Problems with using historical cost accounting include all of the following, except:
A) Historical cost facilitates "gains trading" of assets.
B) Historical cost is usually impossible to verify objectively.
C) Historical costs tend to become less relevant over time.
D) Historical cost accounting tends to overstate income in periods of inflation.

Question

Quizplus · Accepted Answer

Historical cost is generally verifiable since it is based on the actual transaction cost of an asset at the time of purchase, making it objective and reliable for accounting purposes.

Problems with Using Historical Cost Accounting Include All of the Following