Multiple choice

In which of the following accounting concepts, assets are always recorded at acquisition cost or historical cost and that cost becomes the basis for all future accounting for the asset?

  1. Cost concept

  2. Money measurement concept

  3. Accounting period concept

  4. Legal aspect concept

  5. Convention of materiality

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A Correct answer
Explanation

In this accounting concept, assets are always recorded at acquisition cost or historical cost and that cost becomes the basis for all future accounting for the asset.