The primary measurement basis currently used to value assets in external financial statements of an enterprise is the
A) current market price if the assets currently held by an enterprise were sold on the open market.
B) current market price if the assets held by an enterprise were purchased on the open market.
C) present value of the cash flows the assets are expected to generate over their remaining useful lives.
D) market price of the assets held by an enterprise at the date the assets were acquired (although some assets may be valued at their current selling price or net realizable value).

Question

Quizplus · Accepted Answer

The primary measurement basis currently used to value assets in external financial statements of an enterprise is the market price of the assets held by an enterprise at the date the assets were acquired. However, some assets may be valued at their current selling price or net realizable value. This is known as historical cost accounting, which is the most widely used measurement basis in accounting.

The Primary Measurement Basis Currently Used to Value Assets in External