Answer:
Cost
Explanation:
The principle states that an asset would be recorded in the balance sheet at the value of its purchase price irrespective of the time it had been held; the principle encourages reliability in prices.
An example is when a company purchased a piece of land in 2000 for $3,000. After 10 years later, the company is still in business and on its balance sheet the value is recorded as $3,000 even though the current fair market value of the land is far greater than $3,000. This is a case of historical cost principle.
