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NABTEB Accounting 2023 Objective — Question 6

Question 6 of 50 from the National Business and Technical Examinations Board (NABTEB) Accounting 2023 Objective paper, with the correct answer and a full explanation.

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The accounting concept which is the basis upon which assets of a business are valued is the (a) consistency concept (b) dual aspect concept (c) historical cost concept (d) accrual concept

  • A. consistency concept
  • B. dual aspect concept
  • C. historical cost conceptCorrect
  • D. accrual concept

Explanation

Under the historical cost concept, assets are recorded in the books at the price paid to acquire them.

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