Of the following reporting assumptions or reporting principles, the one most widely criticized is the
A)consistency principle
B)full-disclosure principle
C)entity assumption
D)historical cost principle

Question

Quizplus · Accepted Answer

The historical cost principle is the most widely criticized reporting principle as it does not account for the changes in market value of assets over time. This can lead to potentially misleading balance sheet statements as the reported values do not reflect the true value of the assets.

Of the Following Reporting Assumptions or Reporting Principles, the One