Original cost may be defined as the:
A)cash price of the asset when purchased.
B)discounted future cash flows.
C)selling price.
D)price paid by the consumer when it was first released for consumer sales.

Question

Quizplus · Accepted Answer

Original cost refers to the cash price of an asset at the time of purchase. It is the actual cost paid for acquiring the asset and does not include any future cash flows or potential resale value. Therefore, option A is the correct choice. Option B is incorrect as it refers to the present value of future cash flows and not the original cost. Option C is also incorrect as it refers to the selling price, which may differ from the original cost due to market fluctuations or other factors. Option D is incorrect as it refers to the price paid by the consumer when the asset was first released, which may not necessarily be the same as the original cost as the price may have been adjusted over time.

Original Cost May Be Defined as The