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Advantages of Using Historical Cost as the Basis of Valuation

Question 4

Multiple Choice

Advantages of using historical cost as the basis of valuation of property, plant, and equipment include all of the following except


A) it is representationally faithful.
B) gains and losses from holding the asset are recognized in the period of value change.
C) cost equals the fair market value at the date of acquisition.
D) it is consistent with the valuation of many other assets and liabilities.

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