BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -The cost principle is an accounting principle that records assets at their respective cash amounts at the time the asset was purchased or acquired. The amount of the asset that is recorded may not be increased for improvements in market value or inflation, nor can it be updated to reflect any depreciation.

Detailed explanation-2: -The cost principle is one of the basic underlying guidelines in accounting. It is also known as the historical cost principle. The cost principle requires that assets be recorded at the cash amount (or the equivalent) at the time that an asset is acquired.

Detailed explanation-3: -The historical cost principle is a basic accounting principle under U.S. GAAP. Under the historical cost principle, most assets are to be recorded on the balance sheet at their historical cost even if they have significantly increased in value over time.

Detailed explanation-4: -Fixed asset acquired in exchange for shares or other securities in the enterprise should be recorded at its fair market value, or the fair market value of the securities issued, whichever is more clearly evident.

Detailed explanation-5: -Detailed Solution. The correct answer is the Cost Concept. The cost concept requires that all assets are recorded in the book of accounts at their purchase price, which includes the cost of acquisition.