Question

Accounts are prepared on the basis of historical costs​

Answer 1

Answer:

Under the historical cost basis of accounting, assets and liabilities are recorded at their values when first acquired. They are not then generally restated for changes in values. Costs recorded in the Income Statement are based on the historical cost of items sold or used, rather than their replacement costs.

Answer 2

Answer:

costs are recorded in the income statement are based on historical cost

Explanation:

assets and liabilities are recorded at their values when first acquired.