Valuing assets at their fair value rather than at their cost is inconsistent with the

Question

Quizplus · Accepted Answer

Valuing assets at their fair value instead of their historical cost violates the historical cost principle, which requires that assets be recorded at their original cost. The economic entity assumption pertains to keeping business and personal transactions separate. The periodicity assumption states that accounting information should be reported at regular intervals. The full disclosure principle requires that all relevant information is provided in financial statements.

Valuing Assets at Their Fair Value Rather Than at Their