Which of the following concepts (or principles)would require that an item be recorded at the amount actually paid rather than at the estimated market value?
A) Going-concern concept
B) Entity concept
C) Cost principle
D) Stable monetary unit concept

Question

Quizplus · Accepted Answer

The cost principle requires that assets be recorded at their original cost, even if their market value has increased or decreased since the time of acquisition. This ensures that financial statements are not based on subjective estimates of value, but rather on objective and verifiable documented transactions.

Which of the Following Concepts (Or Principles)would Require That an Item