Because of its objective nature,historical cost is the attribute used to measure many of the assets recognized on the balance sheet.

Question

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Historical cost is the attribute used to measure many of the assets recognized on the balance sheet because it reflects the actual cost incurred to acquire the asset and is an objective measure. This includes assets such as property, plant, and equipment, which are typically recorded at historical cost less accumulated depreciation. However, there are some exceptions where assets may be recorded at fair value or other measures instead of historical cost.

Because of Its Objective Nature,historical Cost Is the Attribute Used