Question

F ZMW 51,000 cash is paid to buy land, the land is reported on the buyer's balance sheet at ZMW 51,000.

Answer 1

Answer:

This is made due to the application of the cost principle or historical cost concept.

Explanation:

The cost principle or historical cost concept states that the assets, equities, and liabilities are required to be recorded on the financial records on the basis of their original cost. Thus as the cash paid is ZMW 51,000, the same is required to be recorded on the balance sheet of the buyer.