The historical cost principle provides that: Select one: O a. the recorded amount of an acquired item should be the fair market value of the item. O b. None of the answers are correct O .items whose costs are insignificant compared to other amounts on the financial statements may be accounted for in the most expedient manner. O d. assets and equities be expressed in terms of a common denominator. e. the expenses of generating revenue should be recognized in the same period that the related revenue is recognized.

The historical cost principle provides that: Select one: O a. the recorded amount of an acquired item should be the fair market value of the item. O b. None of the answers are correct O .items whose costs are insignificant compared to other amounts on the financial statements may be accounted for in the most expedient manner. O d. assets and equities be expressed in terms of a common denominator. e. the expenses of generating revenue should be recognized in the same period that the related revenue is recognized.

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter3: Analyzing And Recording Transactions

Section: Chapter Questions

Problem 11MC: Also known as the historical cost principle, ________ states that everything the company owns or...

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Also known as the historical cost principle, ________ states that everything the company owns or controls (assets) must be recorded at their value at the date of acquisition. A. revenue recognition principle B. expense recognition (matching) principle C. cost principle D. full disclosure principle
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TRUE OR FALSE The principle of historical cost states that acquired assets should be recorded at their actual cost and not at what management thinks they are worth as at reporting date.
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