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Cost Principle - Accounting Principle
According to this principle all the non-monetary assets of the business are display in the books of accounts at the historical cost that is the price paid to obtain these assets. Non-monetary assets are rights or claims, current or fixed that cannot be converted in fixed number of rupees at a point of time. The example of current non-monetary assets are inventories, prepared expenses etc.,and of fixed non-monetary assets are building, plant & machinery, furniture, etc.
Xcell engineering is planning to construct a futsal stadium which has 5 courts to be rented out at any point of time. Its initial cost of investment is RM$280,000. It is expected t
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