The historical cost principle requires that when assets are acquired, they be recorded atappraisal value.cost.book value.O market price. The private sector organization involved in developing accounting principles is theFinancial Auditors' Standards Body.Feasible Accounting Standards Body.Financial Accounting Standards Board.O Financial Accounting Studies Board.

Answered: The historical cost principle requires…

The historical cost principle requires that when assets are acquired, they be recorded at appraisal value. cost. book value. O market price.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

The historical cost principle requires that when assets are acquired, they be recorded at
appraisal value.
cost.
book value.
O market price.

The private sector organization involved in developing accounting principles is the
Financial Auditors' Standards Body.
Feasible Accounting Standards Body.
Financial Accounting Standards Board.
O Financial Accounting Studies Board.

Expert Solution

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The historical principle helps to determine the value of assets to be recorded in the books of accounts.

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