Historical costs are based on the original costs to acquire a long-term asset,while current costs represent the costs to replace the long-term asset.

Name: Historical costs are based on the original costs to acquire a long-term asset,while current costs represent the costs to replace the long-term asset.
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Question

Quizplus · Accepted Answer

Historical costs refer to the initial costs incurred to acquire a long-term asset, while current costs refer to the costs necessary to replace the asset at present. So, the statement is true.

Historical Costs Are Based on the Original Costs to Acquire