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What is Cost Principle?

9. What is Cost Principle?

1. The value of that asset is recorded in the business's financial reports.
2. Rules and guidelines that companies must follow when reporting financial data.
3. The assumption is that an entity will remain in business for the foreseeable future.
4. 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.