Explore BrainMass
Share

Explore BrainMass

    Arguments Against Historical Cost Use in Accounting

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Which of the following is an argument against using historical cost in accounting?

    Fair values are more relevant.
    Historical costs are based on an exchange transaction.
    Historical costs are reliable.
    Fair values are subjective.

    © BrainMass Inc. brainmass.com October 10, 2019, 2:39 am ad1c9bdddf
    https://brainmass.com/business/financial-accounting-bookkeeping/arguments-against-historical-cost-use-in-accounting-387206

    Solution Preview

    Fair values are more relevant is the correct response. Many companies contend that it is not fair for a company to use the historical ...

    Solution Summary

    This solution helps with arguments against historical costs.

    $2.19