Which basic principle of accounting states that assets are initially recorded at the amounts paid to acquire the assets?

Question

Quizplus · Accepted Answer

The cost principle states that assets and liabilities are initially recorded at the amount paid or obligated to pay. Historically, acquisition cost is considered the proper initial measurement because, at the time the asset is acquired, it represents the fair value of the asset as agreed by both the buyer and the seller.

Which Basic Principle of Accounting States That Assets Are Initially