Concept:The historical concept, also called the cost concept, determines how assets are valued in accounting records.
Explanation:Under this concept, an asset is recorded at the cost incurred to acquire it.
It is not valued based on expected future returns or current market value.
This historical cost provides an objective and verifiable basis for valuation.
The dual aspect concept deals with double-entry recording of transactions.
The consistency concept requires using the same accounting methods over time.
The accrual concept records revenues and expenses when they are earned or incurred, not when cash is received or paid.
Therefore, the valuation of assets is based on the historical concept.
Answer:D. historical concept