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True or False?
False
False
The accounting view of asset value is to a great extent grounded in the notion of historical cost, which is the original cost of the asset, adjusted upward for improvements made to the asset since purchase and downward for loss in value associated with the aging of the asset.
Statement which you made is True.According to the fundamental assumptions of Accounting, Asset are valued on going concern Assumptions,But the measurement will be on Historical Cost.
Three Fundamental Assumptions of Accounting are
Going Concern
Consistency
Accrual
False .
False.
This concept presumes that business will continue for forseeable future and hence, all investments in assets will be recovered by charging depreciation/ amortization against income earned over a period of time.
False
For accounting record purposes, assets should always be recorded at cost.
