Which of These Is NOT a Criticism of Historical Cost

question 7

Multiple Choice

Which of these is NOT a criticism of historical cost accounting?

• A) It is not objective and is open to manipulation
• B) It has been used by business over many centuries
• C) Historical cost overstates profit in times of rising prices
• D) Cost information is not always available

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Definitions:

Operating At A Surplus

The condition in which a company or organization's revenues exceed its expenditures, leading to a positive financial position.

Money-Making

The process of generating revenue or profit, often considered as the primary goal of a business.

Growth Strategy

A plan of action designed to increase the size and scope of a business, often involving expansion into new markets or increasing market share.

Ideal Size

The optimal dimensions or scale of an object, organization, or system to achieve maximum efficiency or performance.