The cost principle states that an asset should be recognised on the balance sheet at:

Question

Quizplus · Accepted Answer

The cost principle states that assets should be recorded on the balance sheet at their historical cost, which is the amount paid to acquire or produce the asset. This means that the asset should be recorded at its original cost, without consideration of any changes in market value or depreciation over time. Therefore, the correct answer is C.

The Cost Principle States That an Asset Should Be Recognised