Question

In accounting record, fixed assets are recorded at __________.

• A. Historical cost
• B. Normated cost
• C. Replacement cost
• D. Salvage value

Answer 1

The correct option is A Historical cost

A historical cost is a measure of value used in accounting in which the price of an asset on the balance sheet is based on its nominal or original cost when acquired by the company. The historical cost is used for assets under generally accepted accounting principles (GAAP) .