According to generally accepted accounting principles, a company's balance sheetshould show the company's assets at:
A)Current replacement cost.
B)The cash equivalent value of what was given up or the asset received, whichever is more clearly evident.
C)The market value of the asset received in all cases.
D)The best estimate of a certified internal auditor.
E)The cash outlay only, even if part of the consideration given was something other than cash.

Question

Quizplus · Accepted Answer

According to generally accepted accounting principles (GAAP), assets are recorded at their historical cost, which is the cash equivalent value of what was given up or the asset received, whichever is more clearly evident.

According to Generally Accepted Accounting Principles, a Company's Balance Sheetshould