Question: There are four basic accounting principles that underlie all accounting and financial reporting practices. These principles are (1) historical cost, (2) revenue recognition, (3) matching

There are four basic accounting principles that underlie all accounting and financial reporting practices. These principles are (1) historical cost, (2) revenue recognition, (3) matching principle, and (4) full disclosure. According to the historical cost principle, assets and liabilities are recorded at their historical or acquisition cost. Applying this principle is beneficial because it can be supported by other documentation. Do you agree that the United States should use historical cost?

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