Accountants do not attempt to measure the change in a plant asset's fair value during ownership because
A) the assets are not held for resale.
B) plant assets cannot be sold.
C) losses would have to be recognized.
D) it is management's responsibility to determine fair values.

Question

Quizplus · Accepted Answer

Plant assets are not held for resale, and therefore, measuring changes in fair value during ownership is not necessary. Instead, accountants focus on recording the cost and depreciation of the asset over its useful life.

Accountants Do Not Attempt to Measure the Change in a Plant