The requirement that transactions be recorded at their exchange price at the transaction date is called the:
A)conservatism exception.
B)separate entity assumption.
C)cost principle.
D)monetary unit assumption.

Question

Quizplus · Accepted Answer

The cost principle states that assets and liabilities should be initially recorded at their original cost to the company.Following the cost principle,assets and liabilities are first recorded at cost,which is their cash-equivalent value on the date of the transaction.

The Requirement That Transactions Be Recorded at Their Exchange Price