What is the most commonly used measurement basis?
A)Current cost.
B)Realizable value.
C)Historical cost.
D)Present value.

Question

Quizplus · Accepted Answer

Historical cost is the most commonly used measurement basis in accounting. Under this basis, assets and liabilities are recorded at their original cost, regardless of any subsequent changes in their value. This basis is simple, objective and verifiable, and provides a reliable basis for financial reporting. Other measurement bases such as current cost and present value are also used, but they may be more complex and subjective. Realizable value is not a measurement basis, but rather a concept used to indicate the value that can be realized from the sale of an asset or settlement of a liability.

What Is the Most Commonly Used Measurement Basis