Answer to Question #270739 in Accounting for omardin

Question

a)     Describe ONE MAIN accounting principle, concept, assumption, rule, quality or other conceptual framework of accounting component that may be used in resolving the following accounting problems:

                   i.           A logistics service provider of the company ferrying delicate goods from Mombasa has had a long standing history of damaging some of the goods under its care with no recourse.

              

Answer 1

Historical Cost Principle

Most assets must be reported on the balance sheet at their historical cost, even if their value has greatly increased over time, according to the historical cost principle. Not all assets are held at market value.