Accountants do not attempt to measure the change in a plant asset's market 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, therefore their market value during ownership is not relevant to accounting for these assets. Instead, accountants focus on their historical cost and subsequent depreciation or impairment.

Accountants Do Not Attempt to Measure the Change in a Plant