Historical cost is widely used for asset valuation as it is regarded as providing more ____________ information than estimated market value.
A) subjective
B) relevant
C) reliable
D) accounting entity

Question

Quizplus · Accepted Answer

Historical cost is a measure of value based on the actual cost of acquiring an asset. It is considered to be a reliable measure as it is based on objective data, whereas market value is subject to fluctuations and can be influenced by subjective factors such as supply and demand.

Historical Cost Is Widely Used for Asset Valuation as It