Multiple Choice
Which of the following is not an advantage of historical cost, when compared to fair value?
A) Historical cost is always more relevant than fair value.
B) Historical cost is objective, because it was an amount actually paid.
C) Historical cost is verifiable, while fair value may require estimates.
D) Historical cost uses information the company already has, while fair value may require the company to get price information from others.
Correct Answer:
Verified
Correct Answer:
Verified
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