Accountancy, asked by pratyush7291, 5 months ago

an investment company has securities as current assets having market value substantially lower than the cost price . the company continues to show them at cost . do you think the concept of prudence is being followed

Answers

Answered by purneetkaur93

Answer:

Principle violated is Historical cost concept. ... Historical cost is the amount that is originally paid to acquire the asset and may be different from the current market value of the asset.

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an investment company has securities as current assets having market value substantially lower than the cost price . the company continues to show them at cost . do you think the concept of prudence is being followed​

Answers

an investment company has securities as current assets having market value substantially lower than the cost price . the company continues to show them at cost . do you think the concept of prudence is being followed