Which of the following is not a true statement regarding assets as they appear on the balance sheet?
A)Historical cost gives a good indication of the productive value of assets.
B)Assets held for sale and measured at net realizable value represent a high degree of certainty as to measurement reliability.
C)Certain types of deferred charges do not have any direct effect on future cash flows.
D)In terms of additivity, it is questionable if a balance sheet should be added.

Question

Quizplus · Accepted Answer

Historical cost does not always give a good indication of the current productive value of assets. The value of assets may have increased or decreased since they were acquired, and market value may be a better indicator of their current value.

Which of the Following Is Not a True Statement Regarding