Question

a company shows its assets at undervalued cost in its balance sheet. which principal and value is ignored by the company.
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Answer 1

Answer:

Cost principle / Cost concept

Explanation:

A business should record their assets, liabilities and equity at the original cost at which they were bought or sold. The real value may change over time (e.g. depreciation of assets/inflation) but this is not reflected for reporting purposes.

When company shows its assets at undervalued cost in its balance sheet then the profit will be shown less that the actual value.