Gold, upon its production, is recorded in the books as revenue because of the _____ concept
Answers
Answer:
When a fixed asset is acquired in exchange or in part exchange for another asset, the cost of the asset acquired should be recorded either at fair market value or at the net book value of the asset given up, adjusted for any balancing payment or receipt of cash or other consideration.
Cost concept
The cost concept of bookkeeping states that all acquisitions of things (e.g., resources or things required for exhausting) should be recorded and held in books at cost. Under the expense idea of bookkeeping, a resource ought to be recorded at the expense at which it was bought, no matter what its reasonable worth. Notwithstanding its impediments, the cost concept of bookkeeping is viewed as the most ideal choice when contrasted with the accessible other options.