Question

Valuing assets at their liquidation values rather than thaur cost is consistent with the ________

A)Historic cost principal
B)Peridocity assumption.
C)Expense recognition principle
D)None of the above.​

Answer 1

OPTION.D

Valuing assets at their liquidation values rather than their cost is consistent with None of the above.

Explanation:-

• The historical cost principle refers to that principle in which the acid should be recorded at the purchase price .

• The periodicity assumption refers to a period in which the period is divided like weeks , month , quarterly , semi annually , year etc.

• And the expense recognition principle refers to that principle in which the expenses should be recognized in that year in which they are incurred along with it the revenues are also recognized in which they are earned.

Hence ,the correct Option.D (None Of the Above)