Respuesta :
Also known as the historical cost principle, the cost principle states that everything the business owns or controls (assets) must be recorded at their value at the date of purchase. The cost principle is an accounting principle that demands assets, liabilities, and equity investments to be recorded in financial chronologies at their actual cost.
The cost principle requires that assets be recorded at the cash amount (or equal) at the time the asset is purchased. Further, the recorded amount will not be increased for inflation or modification in market value. The cost principle means that a long-term asset bought for $50,000 of cash would be recorded at $50,000 only. If the same asset were bought for a down payment of $20,000 and a formal promise to be paid $30,000 within a suitable period and with an appropriate interest rate, the asset would also be recorded at $50,000.
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