Cost Concept

Here, assets are those resources that are acquired by the business and they are normally being paid for. The amount being paid for acquiring those properties (resources) is recorded in the book of accounts.

The result is that at any moment in time, the values recorded in the book of account do not necessarily reflect the current value of the asset. The cost of the asset is the selling price plus expenses run in order to bring the asset to its usable state.

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