Valuing assets at their liquidation values rather than their cost is inconsistent with the
A)periodicity assumption.
B)matching principle.
C)materiality constraint.
D)historical cost principle.

Question

Quizplus · Accepted Answer

Valuing assets at their liquidation values rather than their cost is inconsistent with the historical cost principle, which requires that assets be recorded at the amount paid to acquire them. Using liquidation values instead would mean that the assets are not being recorded at their actual historical cost.

Valuing Assets at Their Liquidation Values Rather Than Their Cost