Historical cost:
A)is determined for each asset on a yearly basis.
B)is equal to the amount of cash paid less the dollar value of all non-cash consideration given in the exchange.
C)is a verifiable measure that is relatively free from bias.
D)is the amount that the business could sell the asset for.

Question

Quizplus · Accepted Answer

Historical cost is the original cost at which an asset was acquired and is a verifiable measure that is relatively free from bias. It is not determined on a yearly basis, does not consider non-cash consideration given in the exchange, and is not the amount that the business could sell the asset for.

Historical Cost