Question

In preparing a balance sheet, why do you think standard accounting practice focuses on historical cost rather than market value? 

   In preparing a balance sheet, why do you think standard accounting practice focuses on historical cost rather than market value?
Fundamentals of Corporate Finance
Fundamentals of Corporate Finance
Stephen A. Ross;… 11th Edition
Chapter 2, Problem 3 ↓

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Definition of Historical Cost: Historical cost is the original cost of an asset or liability at the time of its acquisition or incurrence. It represents the actual amount paid or received in a past transaction.  Show more…

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In preparing a balance sheet, why do you think standard accounting practice focuses on historical cost rather than market value?
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