Based on generally accepted accounting principles,assets are recorded on the balance sheet at their current market value.

Question

Quizplus · Accepted Answer

Assets are recorded on the balance sheet at their historical cost, which is the original purchase price plus any additional costs incurred to bring the asset into use. This is known as the cost principle, which is one of the generally accepted accounting principles. While some assets may be recorded at their current market value if there has been a significant change in value since the purchase, this is not the default method of valuation for most assets.

Based on Generally Accepted Accounting Principles,assets Are Recorded on the Balance