According to generally accepted accounting principles,a company's balance sheet should show the company's assets at:
A)The cash equivalent value of what was given up.
B)The current market value of the assets at the balance sheet date.
C)The cash paid to acquire them,even if something other than cash was given in the exchange.
D)The best estimate from a certified internal auditor.
E)The objective value to external users.

Question

Quizplus · Accepted Answer

According to generally accepted accounting principles (GAAP), assets are recorded at their historical cost, which is the cash equivalent value of what was given up to acquire them.

According to Generally Accepted Accounting Principles,a Company's Balance Sheet Should