O-LevelAccountingAccounting principles and policies7707/11 · May/June 2012 · Q301 Mark
Sally applies the historical cost principle and records all her non-current assets at the actual cost. What is an advantage of applying this principle?
ACost is a known fact and can be verified.
BIt is easy to compare assets bought at different times.
CIt provides for the effects of inflation.
DNon-current assets are shown at a realistic value.
✓ Correct answer
A: Cost is a known fact and can be verified.
Practise more questions on this topic
Oracle Prep sorts past-paper questions by topic, so you can drill Accounting principles and policies and see which topics are most likely to come up next.
Sign up free →