When assets are acquired, they should be recorded in the accounts in conformity with the:
A) cost principle.
B) full-disclosure principle.
C) materiality constraint.
D) separate entity assumption.
E) matching principle.

Question

Quizplus · Accepted Answer

The cost principle states that assets should be recorded at their cost of acquisition, which includes all costs necessary to get the asset ready for its intended use. This principle is in accordance with Generally Accepted Accounting Principles (GAAP).

When Assets Are Acquired, They Should Be Recorded in the Accounts