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What is Cost Principle?
9. What is Cost Principle?
- The value of that asset is recorded in the business's financial reports.
- Rules and guidelines that companies must follow when reporting financial data.
- The assumption is that an entity will remain in business for the foreseeable future.
- None of the above.
Answer: A) The value of that asset is recorded in the business's financial reports
Explanation:
At the point when a business gets a resource, the worth of that resource is recorded in the business' monetary reports. This underlying worth is known as the cost principle, and it is a significant part of monetary revealing for some organizations. Regularly, the expense standard is utilized to track an organization's unmistakable resources, without mirroring the market esteem.