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O-LevelAccountingAccounting principles and policies7707/11 · May/June 2023 · Q351 Mark

A trader always records assets and expenses in his ledger at the price he paid for them. Which accounting principle is he applying?

Abusiness entity
Bhistoric cost
Cprudence
Drealisation

✓ Correct answer

B: historic cost

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About this question

Topic
Accounting principles and policies, O-Level Accounting (syllabus 7707). Multiple choice, 1 mark.
Source
O-Level Accounting, May/June 2023 Paper 1 Variant 1, question 35.

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