Cost concept envisages the recording of the following/in the books of accounts ________________.

An asset at its cost

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Knowledge acquired by business executive

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Changes effected because of some political events.

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None of the above

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Solution

The correct option is C An asset at its cost
The cost concept requires that, all assets are recorded in the book of accounts at their purchase price.
The purchase price includes cost of acquisition, transportation, installation and making the asset ready to use.
In the subsequent years to, the price remains the same (minus depreciation charged). The market price of the asset is not taken into consideration.

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Similar questions

Q. Cost concept envisages the recording of the following in the books of accounts.

Q. Cost concept envisages the recording of which of the following in the books of accounts?

Q. The concept according to which assets are recorded in the books of accounts at the price at which they are acquired or purchased is called cost concept.

Statement A: The owner and business are two separate entities. This is covered by Business Entity concept.

Statement B: Cost concept covers that the books of account are prepared at a certain frequency.

Which of the following are true or false?

(a) The historical cost does not reflect true value of the asset
(b) Accounting is a historical record of the transactions of a business entity.

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