When historical cost is used in the accounting records,the book value of the asset is:
A)the original cost.
B)the market value.
C)original cost less accumulated depreciation.
D)closed out.

Question

Quizplus · Accepted Answer

When historical cost is used in the accounting records, the book value of the asset is the original cost less accumulated depreciation. This means that the asset is not valued at its current market value but rather at the amount it was originally purchased for, minus any depreciation that has been applied to it over time. This method of accounting is used because it is objective and verifiable, and provides a clear audit trail of the asset's history.

When Historical Cost Is Used in the Accounting Records,the Book