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What does the cost principle mean for a company's income statement?

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Question added by abdulaziz khorshid , CREDIT MANAGER , RASHED ABDUL RAHMAN ALRASHED
Date Posted: 2015/12/10
manseer muhammed ali
by manseer muhammed ali , Accountant General , Royal Lighting L.L.C & Royal Furnishing LLC

The cost principle requires that only the verifiable, historical costs recorded at the time of transactions will appear as expenses on the income statement. Unfortunately those recorded costs may not measure the economic reality that is occurring in the period of the income statement.

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