Asked by
Samantha Tornabene
on Oct 28, 2024
Verified
Chad Jones is the sole owner and manager of Jones Glass Repair Shop.Jones purchased a truck,to be used in the business,for its market value of $35,000.Which of the following fundamentals requires Jones to record the truck at the price paid to buy it?
A) Separate-entity assumption.
B) Revenue principle.
C) Monetary unit assumption.
D) Historical cost principle.
Historical Cost Principle
An accounting principle that states all assets should be recorded at their original purchase cost rather than their current market value.
Market Value
The current price at which an asset or service can be bought or sold in the marketplace, often subject to fluctuations based on supply and demand.
- Single out and differentiate the principal classifications of financial statements.
Verified Answer
PS
Learning Objectives
- Single out and differentiate the principal classifications of financial statements.