Daphne is calculating the total asset turnover ratio of a company. Under which accounting principle would she value the assets o
f the company at their original cost? A. accrual method of accounting B. historical cost accounting C. business entity concept D. going concern concept
The accounting principle she would use to value the assets of the company at their original cost is historical cost accounting.
<h3>What is historical cost accounting?</h3>
Historical cost accounting is an accounting method for recording the value of fixed assets under US GAAP where the value of an asset on a balance sheet is equal to the cost of acquiring the asset.
