Final answer:
The question relates to the historical cost principle in accounting, stating that assets should be recorded at their original purchase price.
Step-by-step explanation:
The statement in question refers to the historical cost principle, which is an accounting concept requiring that assets and services be recorded at their actual cost at the time of purchase or acquisition. This cost is considered to be objective and verifiable, hence providing a stable basis for financial reporting. The historical cost is typically used as a basis for calculating depreciation of an asset over its useful life and helps in ensuring that the financial statements are consistent and comparable over time.