Which Statement Below Is TRUE About the Cost Principle

Multiple Choice

Which statement below is TRUE about the cost principle?

A) The cost principle says that all costs associated,directly or indirectly,with buying and using a long-term asset should be permanently capitalized.
B) The cost principle says that all costs reasonable and necessary to place an asset into a working condition should be capitalized.
C) The cost principle says that all costs associated with purchasing a long-term asset should be expensed in the period of the purchase.
D) The cost principle says that only the cash paid to acquire a long-term asset should be capitalized.