The Historical Cost of an Asset and Its Fair Value

question 4

Multiple Choice

The historical cost of an asset and its fair value are

• A) never the same.
• B) the same when the asset is sold.
• C) irrelevant when the asset is used by the business in its operations.
• D) the same on the date of acquisition.

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Definitions:

Expression

A combination of symbols that represents a quantity or mathematical relation, including numbers, operation symbols, and sometimes variables.

Rules Of Exponents

Fundamental principles used to simplify expressions involving powers of the same base, including multiplication, division, and power of power rules.

Expression

A combination of symbols that represents a quantity or a relationship between quantities.

Y

In Cartesian coordinates, the vertical axis or the value that represents vertical position.