Question

The historical cost prnciple state that ?
a, Assets should be initially recorded at cost and adjusted when the fair value changes
b, Activities of an entity are to be kept separate and distincit from its owner
c,Assets should be recorded at their cost
d,all

Answer 1

d, all of the above. The historical cost principle states that assets should be initially recorded at cost and adjusted when the fair value changes, the activities of an entity should be kept separate and distinct from its owner, and assets should be recorded at their cost.