An important argument in support of historical cost information is:
A) Relevance.
B) Predictive quality for future cash flows.
C) Materiality.
D) Verifiability.

Question

Quizplus · Accepted Answer

Verifiability is an important argument in support of historical cost information. Historical cost information is considered verifiable because it is based on actual transactions that occurred in the past and can be verified through documentation such as invoices, receipts, and contracts. This provides a level of confidence in the reliability of historical cost information, which is important in decision-making processes. While relevance, predictive quality, and materiality are also important considerations, they are not as directly related to the verifiability of historical cost information.

An Important Argument in Support of Historical Cost Information Is