Answer:
TRUE
Explanation:
This is known as historical cost, a common term in generally accepted accounting principles (GAAP). It's the original cost recorded in the balance sheet when an asset acquisition is recorded. It takes into consideration all of the items that can be attributed to its purchase and putting the asset to use. These items include the purchase price and such factors as commissions, transportation, appraisals, warranties, installation, and testing. For example, if a company buy a computer system, the original cost can include delivery charges, sales taxes, and setup fees.
