In General, Standard Setters Require That Most Assets Be Recorded

question 96

Multiple Choice

In general, standard setters require that most assets be recorded using historical cost because

• A)fair values may overstate assets and equity.
• B)fair values may not always be representationally faithful.
• C)cost often cannot be verified.
• D)cost values may or may not be relevant.

---

Definitions:

Hair Length

A physical measurement referring to the length of hair strands from their roots to their ends.

Automobile

A wheeled motor vehicle used for transporting passengers, which also carries its own engine or motor.

Correlation Coefficient

A statistical measure that calculates the strength and direction of a linear relationship between two variables, ranging from -1 to 1.

Relationship

The manner through which two or more ideas, items, or individuals are linked, or the condition of being linked.