Proponents of historical cost ordinarily maintain that in comparison with all other valuation alternatives for general purpose financial reporting, statements prepared using historical costs are more

A. verifiable.

B. relevant.

C. indicative of the entity's purchasing power.

D. conservative.

D. conservative

Explanation:

Historical cost method relates to recording of assets at their historical i. e original cost instead of recording them at their increased/revalued values.

Such a method ensures compliance with law of conservatism or prudence which simply states, "do not anticipate a profit, but provide for all possible losses".

Preparing financial statements based upon historical cost assumption ensures reliability and avoids overstatement of assets. This means investors, government and other stakeholders can place better reliance upon credibility of such financial statements.