According to the cost principle, if an appraised value is known - it should be used for recording purposes.

Question

Quizplus · Accepted Answer

The cost principle states that assets should be recorded at their original cost, not their appraised value. This ensures that financial statements reflect the actual amount paid for an asset, rather than a potentially inflated value. However, there are some exceptions to this principle, such as when an asset's market value has significantly decreased below its original cost (impairment), or when an asset is donated to a company (recorded at fair value).

According to the Cost Principle, If an Appraised Value Is