The historical cost of an asset and its fair value are
A) never the same.
B) the same when the asset is sold.
C) irrelevant when the asset is used by the business in its operations.
D) the same on the date of acquisition.

Question

Quizplus · Accepted Answer

The historical cost of an asset and its fair value are the same on the date of acquisition because the historical cost is the actual amount paid for the asset, which reflects its fair value at the time of purchase.

The Historical Cost of an Asset and Its Fair Value