The Cost Principle States That an Asset Should Be Recognized

question 74

Multiple Choice

The cost principle states that an asset should be recognized 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.

---

Definitions:

Nature Exists

A basic affirmation acknowledging the presence and reality of the natural world and ecosystems outside of human creation and involvement.

Success of Society

A measurement of the effectiveness, prosperity, and well-being of a group of people living together in a community or region.

Universalism

The philosophical or theological concept that some ideas have universal application or applicability.

Ethics

a set of moral principles that govern the behavior of individuals and organizations.