Which of the following statements does NOT apply to the historical cost principle?
A. Historical cost represents a value at a point in time.
B. The principle does not apply to financial instruments.
C. Historical cost results from a reciprocal or two-way exchange.
D. Over time, historical cost becomes irrelevant in terms of predictive value.
Answer:B
Which of the following statements does NOT apply to the historical cost principle?
A. Historical cost represents a value at a point in time. B. The principle does not apply to financial instruments. C. Historical cost results from a reciprocal or two-way exchange. D. Over time, historical cost becomes irrelevant in terms of predictive value.