Most companies value capital assets on the balance sheet at:

Question

Quizplus · Accepted Answer

Most companies value capital assets on the balance sheet at historical cost, which is the original cost of the asset at the time of purchase. This method provides a record of the cost of the asset and facilitates comparability over time. While market value or replacement cost may provide a more current estimate of the value of the asset, historical cost is the most commonly used valuation method for accounting purposes. Net realizable value is typically used for inventory valuation, not capital assets.

Most Companies Value Capital Assets on the Balance Sheet At