Theory Base of Accounting · Class 11 · CBSE · Commerce Accountancy
According to which concept are transactions recorded in the books of accounts at the price paid to acquire them, regardless of their current market v…
Practice question from Theory Base of Accounting (Class 11 · CBSE · Commerce Accountancy), with the correct answer and a step-by-step solution.
easy · MCQ · Q-0DC411
According to which concept are transactions recorded in the books of accounts at the price paid to acquire them, regardless of their current market value?
- A.Dual Aspect Concept
- B.Accrual Concept
- C.Historical Cost ConceptCorrect answer
- D.Realisation Concept
Solution
The Historical Cost Concept requires assets to be recorded at their purchase price (cost) at the time of acquisition, providing an objective and verifiable basis for measurement.
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