One of the key generally accepted accounting principles

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One of the key Generally Accepted Accounting Principles (GAAP) is the "cost principle". The cost principle is the general concept that you should only record an asset, liability, or equity investment at its original acquisition cost.

1. What are the strengths and weaknesses of the cost principle?

2. What would you propose as an alternative to the cost principle?

3. What are the strengths and weaknesses of your proposed alternative?

Reference no: EM13587962

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