Match the descriptions with their terms :
-Under this principle, assets are recorded in the accounts at their purchase price.
A) Resource providers
B) Materiality
C) Assets
D) SAC 11
E) Full disclosure principle
F) Cost
G) A conceptual framework
H) Verifiability
I) The Conceptual Framework
J) The Framework
K) Losses
L) Contingent liabilities

Question

Match the descriptions with their terms :
-Under this principle, assets are recorded in the accounts at their purchase price.
A) Resource providers
B) Materiality
C) Assets
D) SAC 11
E) Full disclosure principle 
F) Cost
G) A conceptual framework
H) Verifiability
I) The Conceptual Framework
J) The Framework
K) Losses
L) Contingent liabilities

Quizplus · Accepted Answer

The cost principle dictates that assets should be recorded at their purchase price, which is the cost to acquire them. This principle ensures that the assets are recorded in the financial statements at a measurable and objective amount, providing a consistent basis for recording and reporting.

Match the Descriptions with Their Terms