When historical cost is used to record equipment,it would appear as the:
A)original cost on the balance sheet.
B)residual value on the income statement.
C)residual value on the balance sheet.
D)original cost on the income statement.

Question

Quizplus · Accepted Answer

When historical cost is used to record equipment, it would appear as the original cost on the balance sheet. This is because historical cost is the original cost of an asset when it was acquired, and it is recorded on the balance sheet as the cost of the asset. The residual value of the equipment would not appear on the balance sheet unless it had been fully depreciated or disposed of. The income statement would not show the original cost of the equipment, but would instead show any depreciation expense recorded for the period.

When Historical Cost Is Used to Record Equipment,it Would Appear