In relation to the measurement of an asset,the amount of consideration given to acquire the asset at its acquisition date is known as its:
A)historical cost.
B)current cost.
C)realisable value.
D)present value.

Question

Quizplus · Accepted Answer

The historical cost of an asset is the amount of consideration given to acquire the asset at its acquisition date. This cost includes all expenditures necessary to get the asset ready for its intended use, such as shipping and installation costs, taxes and tariffs, and any other incidental costs. The historical cost is the most commonly used basis for the measurement and recording of assets in financial statements.

In Relation to the Measurement of an Asset,the Amount of Consideration