The measurement principle includes the
A) fair value principle only.
B) historical cost principle only.
C) revenue recognition principle and expense recognition principle.
D) historical cost principle and the fair value principle.

Question

Quizplus · Accepted Answer

The measurement principle includes both the historical cost principle and the fair value principle. The historical cost principle records assets and liabilities at their original cost while the fair value principle records assets and liabilities at their current market value. Both principles are used to accurately measure financial transactions and events.

The Measurement Principle Includes the