Final answer:
Under GAAP, assets are usually recorded on a balance sheet at their historical cost. This provides a consistent and objective basis for financial reporting, contrasting with other valuation methods that are more subject to change and interpretation.
Step-by-step explanation:
Under GAAP (Generally Accepted Accounting Principles), assets are generally carried on a firm's balance sheet at their historical cost. This is because historical cost is objective and verifiable, and it provides consistency in financial reporting.
The historical cost principle requires that most assets are recorded and reported at their original purchase cost and are not subsequently adjusted for changes in market value. This approach contrasts with other bases such as market value, book value, or salvage value which may reflect current conditions but are subject to greater fluctuation and subjective valuation.