The use of acquisition cost as a valuation method is justified on the basis that acquisition cost

Question

Quizplus · Accepted Answer

Acquisition cost is considered an objective method of valuation because it is based on the actual cost of acquiring the asset. It may not necessarily reflect the current market value or the future earning capacity of the asset, but it is a reliable and objective measure of the initial investment made to acquire the asset. Therefore, option D is the best choice.

The Use of Acquisition Cost as a Valuation Method Is