Valuing assets at their fair value rather than at their cost is inconsistent with the:
A) economic entity assumption.
B) historical cost principle.
C) periodicity assumption.
D) full disclosure principles.

Question

Quizplus · Accepted Answer

Valuing assets at their fair value rather than at their cost is inconsistent with the historical cost principle, which states that assets should be recorded at their original cost. This principle is based on the belief that cost is a reliable and verifiable measure of a company's resources, and it ensures consistency and comparability of financial statements over time.

Valuing Assets at Their Fair Value Rather Than at Their