Advantages of Using Historical Cost as the Basis of Valuation

question 19

Multiple Choice

Advantages of using historical cost as the basis of valuation of property, plant, and equipment include all of the following except

• A)it is a very reliable valuation
• B)gains and losses from holding the asset are recognized in the period of value change
• C)cost equals the fair market value at the date of acquisition
• D)it is consistent with the valuation of other assets, liabilities, and stockholders' equity

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Definitions:

Reinforcement

In psychology, a process by which a stimulus increases the probability of a behavior by either introducing a positive outcome or removing a negative one.

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An individual who has significant influence on the attitudes, opinions, or behaviors of others, typically within a specific community or group.

Endorsement

A public declaration of support for a product, service, or individual, often by a celebrity or recognized authority.

Yo-Yo Ma

A world-renowned cellist known for his superb musicality, versatility, and dedication to various musical genres as well as cross-cultural collaboration projects.