Under the Cost Principle

question 118

Multiple Choice

Under the cost principle:

• A)only reasonable and necessary costs of acquiring an asset should be recorded as a cost of the asset.
• B)costs of preparing an asset for use should never be recorded as part of the cost of the asset.
• C)all reasonable and necessary costs of acquiring an asset and preparing it for use should be recorded as a cost of the asset.
• D)only the actual purchase price of the asset is recorded as the cost of the asset.

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