The _______________ requires that assets be recorded at the actual cost.
A) business entity principle
B) matching principle
C) cost principle
D) fair value principle

Question

Quizplus · Accepted Answer

The cost principle requires that assets be recorded at the actual cost. This means that the initial valuation of assets, such as equipment or buildings, should reflect the amount of cash, goods, or services that were used in their acquisition. The cost principle is one of the basic accounting principles that helps ensure the reliability of financial statements.

The _______________ Requires That Assets Be Recorded at the Actual