Because market values are subjective,many assets are carried on the balance sheet at their acquisition cost.

Question

Quizplus · Accepted Answer

Market values depend on various factors and can vary based on individual perceptions and demand. As a result, assets are generally recorded on the balance sheet at their historical cost rather than their current market values. This conservative approach helps to avoid potential valuation discrepancies and overstatement of asset values.

Because Market Values Are Subjective,many Assets Are Carried on the Balance