At the time of originally recording a transaction,historical cost also represents the fair market value.

Question

Quizplus · Accepted Answer

Historical cost is the original cost incurred to acquire an asset, and at the time of recording the transaction, it represents the fair market value of the asset. However, as time passes, changes in market conditions and other factors can cause the fair market value to differ from the historical cost.

At the Time of Originally Recording a Transaction,historical Cost Also