If your assets increase from one year to the next, so must your net worth by an equal amount

Historical cost is the basis advocated for recording the acquisition of property, plant, and equipment for all of the following reasons except

a. at the date of acquisition, cost reflects fair market value. b. property, plant, and equipment items are always acquired at their original historical cost. c. historical cost involves actual trans¬actions and, as such, is the most reliable basis. d. gains and losses should not be anticipated but should be recognized when the asset is sold.

A wrongdoer may be judgment proof as a result of being found innocent in a criminal case

Indicate whether the statement is true or false