Which of the Following Is True About the Cost Principle

Multiple Choice

Which of the following is true about the cost principle?

A) It limits the economic data recorded in an accounting system to data related to the activities of that company.
B) It initially records assets in the accounting records at their purchase price.
C) It assumes that a company will continue in business indefinitely.
D) It reports the revenues earned by a company for a period with the expenses incurred in generating the revenues.