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1.) Which of the following is an argument for using historical cost in accounting? A.) Fair...

1.) Which of the following is an argument for using historical cost in accounting?

A.) Fair values are subjective

b.) Fair values are more relevant

c.) Historical costs are based on an exchange transaction.

d.) Historical costs are reliable.

2.) ___________ is not an accounting change.?

_________ are fill in the blank questions

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Answer #1

Que. 1)

d. 'Historical Costs are reliable.' is an argument for using historical cost in accounting

Explanation:

Historical cost is generally free from bias.It can be verified independently with the help of the evidence, and hence more reliable.

Que. 2)

Correction of Error is not an accounting change.

Explanation :

Correction of error is not an accounting change because error results from the use of an unacceptable accounting principle or the use of an estimate that was not in good faith or mathematical miscalculations.

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Answer #2

Question one answer was Fair values are subjective

source: Final test answered by school
answered by: Meese
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