The principle that is used to measure the amount assets are to be recorded at when exchanged is called the ______ principle.
A) cash
B) cost
C) assets
D) separate entity

Question

Quizplus · Accepted Answer

According to the cost principle, assets should be recorded at the cost paid to acquire them. This ensures that the accounting records reflect the actual amount paid for the assets at the time of acquisition. Other principles, such as the cash principle or separate entity principle, are not directly related to measuring the amount assets are recorded at when exchanged.

The Principle That Is Used to Measure the Amount Assets