Please, read the affirmation and say whether it is true or false.
- Historical costs don't require adjustments as time passes. TRUE FALSE. Please, choose the correct answer according to the quiestion.
What document does not indicate the historical cost? Purchasing documents. Trade documentation. Cash register receipt. Sales documents. Please, complete the sentence:
The historical cost principle states that ______________. The value of an asset is likely to deviate from its original purchase price over time. You should only record an asset, liability, or equity investment at its original acquisition cost or purchase price on their balance sheet. The cost has the disadvantage of not necessarily representing the actual fair value of an asset. Depreciation expense is recorded for longer-term assets.
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