The method for measuring and reporting different monetary amounts for various elements in the financial statements that uses what it would cost to replace the asset or settle the liability would best be described as current cost.

Question

Quizplus · Accepted Answer

Current cost accounting measures and reports monetary amounts for assets and liabilities based on the cost to replace the asset or settle the liability at the current time, rather than historical cost.

The Method for Measuring and Reporting Different Monetary Amounts for Various