Which of the Following Statements Does NOT Apply to the Historical

question 78

Multiple Choice

Which of the following statements does NOT apply to the historical cost principle?

• A) Historical cost represents a value at a point in time.
• B) The principle does not apply to financial instruments.
• C) Historical cost results from a reciprocal or two-way exchange.
• D) Over time, historical cost becomes irrelevant in terms of predictive value.

---

Definitions:

Data Collection

The process of gathering and measuring information on targeted variables to answer relevant questions and evaluate outcomes.

Quick

Characterized by rapidity or speed in movement, action, or thought.

Causal Relationship

A connection between two variables where a change in one directly causes a change in the other.

Research Design

The overall strategy that outlines the approach for collecting, analyzing, and interpreting data in a research study.