The measurement principle that says assets are reported at the price that would be received if the item were sold is called
A)fairvalue.
B)historical cost.
C)materiality.
D)going concern.

Question

Quizplus · Accepted Answer

Fair value is the measurement principle that involves estimating the price at which an asset could be sold in the market. This approach reflects current market conditions and provides a more realistic view of an asset's value compared to historical cost, which records the asset at its original purchase price.

The Measurement Principle That Says Assets Are Reported at the Price