When preparing a balance sheet, the value recorded for an asset is __________.
A) the current market value of the item
B) the replacement cost of the item
C) the planned selling price for the item
D) the amount actually paid for the item
E) None of the answers apply.

Question

Quizplus · Accepted Answer

The value recorded for an asset on a balance sheet is typically the historical cost, which is the amount actually paid for the item.

When Preparing a Balance Sheet, the Value Recorded for an Asset