Which of the following best describes the basis of the accounting measurement model in use today?

Question

Quizplus · Accepted Answer

The accounting measurement model in use today is primarily based on historical cost accounting, except for cases where conceptual frameworks and accounting standards allow deviation from it. This means that generally, assets and liabilities are recorded at their historical costs, unless there is a specific reason to use a different valuation method. This model is a compromise between the desire for accurate accounting information and the need for simplicity and consistency in financial reporting.

Which of the Following Best Describes the Basis of the Accounting