The accounting convention that requires items in the statement of financial position to be valued at their acquisition cost is the:
A)matching convention.
B)realisation convention.
C)money measurement convention.
D)historic cost convention.

Question

Quizplus · Accepted Answer

The historic cost convention requires items in the statement of financial position to be valued at their acquisition cost, which is the cost at which they were originally obtained by the company. This convention ensures that financial statements show a reliable and objective representation of the company's financial position, as it is based on verifiable information rather than subjective estimates or valuations.

The Accounting Convention That Requires Items in the Statement of Financial