The Cost Principle States That an Asset Should Be Recognised

question 26

Multiple Choice

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

• A) the market value of the asset.
• B) at the market value less the accumulated depreciation on the asset.
• C) at its historical cost.
• D) at its historical cost less the accumulated depreciation on the asset.

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Definitions:

Integument

The natural covering of an organism or an organ, such as skin, shell, or rind, acting as a protective barrier.

Cardiomegaly

Abnormal enlargement of the heart, often a symptom of underlying heart disease or conditions.

Cardi/o

A prefix in medical terminology referring to the heart.

Mammography

A diagnostic procedure using low-dose X-rays to examine the human breast for signs of cancer or other abnormalities.