The statement in relation to historical cost that is true is:
A)The stewardship objective of historical cost accounting emphasises the contractual relationship between a firm and those who provide resources to it
B)Historical cost understates profit in a time of rising prices
C)Historical cost is more subjective than alternative systems about what is really going on in a company's business
D)A and B are true

Question

Quizplus · Accepted Answer

Historical cost accounting emphasizes the stewardship objective by focusing on the accountability of management for the resources provided by stakeholders, reflecting the contractual relationship.

The Statement in Relation to Historical Cost That Is True