Asked by Christian Rivera on Jun 06, 2024
Verified
The cost concept is the basis for entering the purchase price into the accounting records.
Cost Concept
An accounting principle that dictates all goods and services purchased are recorded at their original purchase cost.
Accounting Records
Documentation and books used to prepare financial statements and track financial transactions.
- Understand the fundamental principles underlying the accounting process, including cost concepts and the relevance of financial information.
Verified Answer
DP
dharmesh patelJun 13, 2024
Final Answer :
True
Explanation :
The cost concept in accounting states that assets should be recorded in the books of accounts at their acquisition cost, which is usually the purchase price. Therefore, the purchase price is entered into the accounting records based on this concept.
Learning Objectives
- Understand the fundamental principles underlying the accounting process, including cost concepts and the relevance of financial information.
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