Question

8.The business transactions are 1 point
recorded date wise to create
proper record for all
transactions. This is part of
which of the following *
1) Realization concept
2) Materiality Concept
3) Historical Record Concept
4) Accounting Period Concept​

Answer 1

Answer:

A historical cost is the measure of the value used in accounting in which the price of an asset in the balance sheet is based on its original cost when acquired by the company. It is one of the four basic accounting principles. It does not reflect true value of the asset. As accounting consists of recording the original value when the asset is purchased, it is a historical record of the transactions of a business entity.