In the U.S., the Historical Cost Principle

Multiple Choice

In the U.S., the historical cost principle

A) states that all assets be shown on the financial statements at the company's original cost.
B) allows assets to be shown on the financial statements at the most reliable financial value.
C) allows the balance sheet amount of stockholders' equity to reflect the organization's market value.
D) is not affected by the conservatism principle.
E) provides values that are more verifiable and less subject to estimation or opinion than current values.