As you’ve learned from the reading, according to the historical cost principle, assets should be recorded in the books of account at their actual cost, measured on the date when the asset had been purchased. In this discussion, I’d like you to discuss potential advantages and disadvantages of recording assets in the books of account following the historical cost principle. In drafting your post, respond to the following question:
What are the potential advantages and disadvantages of recording assets in the books of account following the historical cost principle?
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