The Statement in Relation to Historical Cost That Is True

question 17

Multiple Choice

The statement in relation to historical cost that is true is:

• A)The stewardship objective of historical cost accounting emphasises the contractual relationship between a firm and those who provide resources to it
• B)Historical cost understates profit in a time of rising prices
• C)Historical cost is more subjective than alternative systems about what is really going on in a company's business
• D)A and B are true

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Definitions:

Agnostic

Pertaining to the belief that the existence or non-existence of a deity or deities cannot be known or proven.

Diabetic Ketoacidosis

A serious diabetes complication where the body produces excess blood acids (ketones) due to a lack of insulin.

Religious Fast

A period of abstinence from all or some kinds of food or drink, often observed due to religious reasons.

Strong Inclination

A powerful tendency or preference towards a particular thinking, feeling, or action.