Maddy Mall is the sole owner of Maddy’s Store Inc. In 2020, Maddy’s Store purchased new equipment. By 2021 the value of the equipment has increased. Which of the following conceptual framework assumptions prevents Maddy’s Store from adjusting the cost of the equipment to its increased value? In addition, explain what Historical Cost Principle is?
a) Historical cost principle
b) Stable monetary unit assumption
c) Revenue recognition principle
d) Going concern assumption
e) Separate entity assumption