Accounting for IGCSE & O level - Final Statements (Section 8 - No. 23)
What does the term 'historic cost' mean when valuing assets?
The current market value of an asset.
The original purchase price of an asset.
The estimated selling price of an asset.
The replacement cost of an asset.
Paliwanag
Historic cost refers to the original cost of an asset at the time of purchase.