Fixed assets are reported in the balance sheet at historical cost basis. This is done in order to comply with _________.

Cost concept

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Conservatism concept

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Constant money value

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Realization concept

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Solution

The correct option is A Cost concept
Fixed assets are reported in the balance sheet at their historical costs. This is done in order to comply with cost concept.
According to cost concept, the cost of the asset is to recorded at historical cost in the books of accounts.
Historical cost is the cost at which the asset is acquired at the time of purchase.

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