recording expenses and revenues in the same period in which they occur 1. Objectivity Principle 2.Matching Principal 3.Historical cost Principal 4.Industry practices constraint
Answers
Answer:
Historical Cost Principle
Revenue Recognition Principle
Matching Principle
Full Disclosure Principle
Cost Benefit Principle
Conservatism Principle
Consistency Principle
Objectivity Principle
Accrual Principle
Economic Entity Principle
Explanation:
This is right answer
Answer:
Historical cost principal is the correct option
Explanation:
A firm or organisation must report all assets on its balance sheet at their original cost or purchase price, according to the historical cost principle. No modifications are made to account for market volatility or changes brought on by increases in inflation. For a continuous trade-off between an asset's utility and dependability, the historical cost principle serves as the basis. The historical price of an item is still trustworthy even when essential modifications aren't made, although it's not totally beneficial over the long run. It doesn't give a good picture of the present fair value of an asset to know that a business could have paid $5,000,000 for an office building 15 years ago. Therefore, the fair market value of the asset will be more beneficial; Assets recorded at historical cost must be modified to reflect usage-related wear and tear in compliance with the accounting concept of conservatism. In order to lower the value of fixed and long-term assets throughout the course of their useful lives, a depreciation charge is utilised. An impairment charge MUST be applied to an asset's recorded value in order to bring it up to its net realisable value when an asset's value has been diminished, such as when a piece of equipment becomes outdated. Adding expenses to assets can be done in different ways. Inflation-adjusted or replacement costs are not the same as an asset's historical cost.
To know more:
https://brainly.in/question/47863950
https://brainly.in/question/16053746
#SPJ2