The cost assumption by accountants means that assets are valued at:
A) acquisition cost.
B) market value.
C) resale value.
D) replacement cost.

Question

Quizplus · Accepted Answer

The cost assumption means that assets are valued at their acquisition cost, which is the cost incurred to acquire or produce the asset. This approach is commonly used in financial accounting to ensure consistency and accuracy in financial reporting. While market value, resale value, and replacement cost may also be relevant to an asset's value, they may not be as reliable or consistent as the acquisition cost.

The Cost Assumption by Accountants Means That Assets Are Valued