Valuing assets at replacement cost to facilitate the measurement of "economic income" violates the accounting convention.
A) conservatism
B) cost benefit
C) objectivity
D) materiality

Question

Quizplus · Accepted Answer

Valuing assets at replacement cost can be subjective and may not be based on verifiable data, thus violating the objectivity convention which requires financial information to be based on evidence and free from bias.

Valuing Assets at Replacement Cost to Facilitate the Measurement of "Economic