Because of the historical cost principle, fair values may not be disclosed in the balance sheet.

Name: Because of the historical cost principle, fair values may not be disclosed in the balance sheet.
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Question

Quizplus · Accepted Answer

The historical cost principle requires that most assets and liabilities be reported at their original acquisition cost. However, fair value disclosures are often required in the notes to the financial statements, even if not directly reflected on the balance sheet itself.

Because of the Historical Cost Principle, Fair Values May Not