Which one of the following is violated when a firm measures property, plant, and equipment at its estimated selling price?
A)Objectivity
B)Economic entity assumption
C)Materiality
D)Input markets

Question

Quizplus · Accepted Answer

Property, plant, and equipment should be measured at their historical cost, not their estimated selling price, to maintain objectivity in accounting. Estimating the selling price involves subjective judgment and can result in over- or under-valuing the assets.

Which One of the Following Is Violated When a Firm