According to GAAP,assets and liabilities are typically recorded on the balance sheet at:
A) historical cost plus depreciation.
B) market value.
C) salvage value.
D) historical cost less depreciation.

Question

Quizplus · Accepted Answer

GAAP requires assets and liabilities to be recorded at historical cost less depreciation. This means that assets are initially recorded at their purchase price, and then adjusted over time to account for depreciation, while liabilities are initially recorded at their face value and remain unchanged over time. Market value or salvage value may be used for certain assets in specific circumstances, but the general rule is to use historical cost less depreciation.

According to GAAP,assets and Liabilities Are Typically Recorded on the Balance