Historical Cost Concept: Advantages & Disadvantages

Instructions:

Choose an answer and hit 'next'. You will receive your score and answers at the end.

question 1 of 3

Under the historical cost concept, at what amount should transactions be initially recorded and subsequently measured?

Create Your Account To Take This Quiz

As a member, you'll also get unlimited access to over 75,000 lessons in math, English, science, history, and more. Plus, get practice tests, quizzes, and personalized coaching to help you succeed.

Try it risk-free
Try it risk-free for 30 days. Cancel anytime.
Already registered? Login here for access

1. What characteristic of accounting information allows users of financial statements to compare the performance, financial position and cash flows of one entity with another entity?

2. Which is NOT an advantage of the historical cost concept of accounting?

Create your account to access this entire worksheet
A premium account gives you access to all lesson, practice exams, quizzes & worksheets
Access to all video lessons
Quizzes, practice exams & worksheets
Certificate of Completion
Access to instructors
Create an account to get started Create Account

About This Quiz & Worksheet

The quiz/worksheet combo aids in testing your knowledge of the historical cost concept. Advantages and disadvantages are on the quiz.

Quiz & Worksheet Goals

See how much you know about:

  • At what amount items are supposed to be measured under the historical cost concept
  • Amount for which transactions should be initially recorded and subsequently measured under this concept
  • Advantages of the historical cost concept
  • Disadvantages of the historical cost concept

Skills Practiced

  • Information recall - access the knowledge you have gained about a characteristic of accounting information that allows users to compare the performance, financial position and cash flows
  • Reading comprehension - ensure that you draw the most important information from the lesson on the historical cost concept
  • Knowledge application - use your knowledge to answer questions about the pros and cons of this concept

Additional Learning

You can learn more by using the lesson called Historical Cost Concept: Advantages & Disadvantages. Other topics you can review include:

  • How the characteristics of accounting information can differ
  • The purpose of the historical cost concept
  • Addressing the drawbacks of the historical cost concept
Support