Although many objections have been raised about the historical cost principle, it is still widely supported for financial reporting because it
A) is an objectively determinable amount.
B) is a good measure of current value.
C) facilitates comparisons between years.
D) takes into account price-level adjusted information.

Question

Quizplus · Accepted Answer

The historical cost principle is supported because it provides an objectively determinable amount, which is verifiable and reliable for financial reporting.

Although Many Objections Have Been Raised About the Historical Cost