For Which of the Following Accounts Would the Use of Historical

question 14

Multiple Choice

For which of the following accounts would the use of historical cost normally be a greater limitation than for the other three?

• A) Cash
• B) Accounts Receivable
• C) Plant and Machinery
• D) Prepaid Rent

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Definitions:

Chart Of Accounts

A listing of all the accounts in the general ledger, each with a unique account number.

Conserve Resources

The practice of using resources efficiently to reduce waste and ensure sustainability.

Deposits In Transit

Funds that have been received and recorded by a business but not yet processed by the bank.

Outstanding Checks

Checks that have been written and recorded in a check register but have not yet been cleared or cashed by the bank.