Question

.5) Assets acquired are recorded in the books, a) At historical cost b) At market value and b. c) Both a. d) None of the above​

Answer 1

Answer:

option a

on historical cost

Answer 2

Assets acquired are recorded in the books (a) at historical cost.

• Historical costs are the value of original costs recorded in the books of accounts of any business for the acquired assets.
• For any acquired asset, only the original value is recorded in the balance sheet which is also known as its historical cost. Its market value is not recorded in the books of accounts.

Therefore the correct answer is (a) Historical Cost.