Most assets should be valued at cost because fair values
A) are not useful for decision-making.
B) may not be representationally faithful.
C) are not relevant.
D) may be higher or lower than historical cost.

Question

Quizplus · Accepted Answer

Fair values may not be representationally faithful, meaning they may not accurately reflect the true economic value of the asset. Therefore, in most cases, it is better to value assets at their historical cost.

Most Assets Should Be Valued at Cost Because Fair Values