The basis upon which assets of an organization is valued is the

The basis upon which assets of an organization is valued is the

  • A.
    historical concept
  • B.
    business entity concept
  • C.
    periodicity concept
  • D.
    materiality concept
Correct Answer: Option A
Explanation

The historical cost concept (also known as cost principle of accounting) states that the assets and liabilities of a business should be presented in accounting records at their historical cost.

You May Also Like