Accounting on the basis of historical cost is valid only if it is assumed that the value

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Accounting on the basis of historical cost is valid only if it is assumed that the value of money remains constant over time. This constraint would be overcome if accounting used current values rather than historical costs.

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Explain the reluctance to record accounting information using current values.

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Financial Accounting An Introduction

ISBN: 9780273737650

2nd Edition

Authors: Mr Barry Elliott, Mr Augustine Benedict

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Question Posted: Aug 31, 2023 02:25 AM

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Accounting on the basis of historical cost is valid only if it is assumed that the value

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The reluctance to substitute current values for historical cost arises from ...View the full answer

Financial Accounting An Introduction

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