In comparison to historical costs, estimated market values are usually considered by accountants to be____________________ for decision making.
A) more reliable but less relevant
B) less reliable but more relevant
C) more material but less comparable
D) more comparable but less material

Question

Quizplus · Accepted Answer

Estimated market values are considered more relevant because they reflect current market conditions and potential selling prices. However, they may be less reliable as they are based on estimates and may not always reflect the true value of an asset. Historical costs, on the other hand, may be more reliable but are less relevant as they do not reflect current market conditions.

In Comparison to Historical Costs, Estimated Market Values Are Usually