Which method of assigning values relies the least on estimates?
A) Appraised value
B) Net realizable value
C) Expected present value of future cash flows of an asset in use
D) Historical cost

Question

Quizplus · Accepted Answer

Historical cost is based on actual past transactions and is the least reliant on estimates compared to the other methods. Appraised value, net realizable value, and expected present value all require some level of estimation or prediction.

Which Method of Assigning Values Relies the Least on Estimates