The valuation basis used to measure equipment and other plant assets on the balance sheet is:

Question

Quizplus · Accepted Answer

The valuation basis used to measure equipment and other plant assets on the balance sheet is the original cost adjusted for depreciation. This is because the cost of the assets is likely to be different from their current value due to factors such as wear and tear, obsolescence, and other changes in market conditions. By subtracting depreciation from the original cost over time, the balance sheet can accurately reflect the current value of the assets. This method is in line with Generally Accepted Accounting Principles (GAAP) and is the most common way of measuring plant assets.

The Valuation Basis Used to Measure Equipment and Other Plant