Accountancy, asked by kiran98729, 1 year ago

Why do accounting principles emphasize the use of historical cost as a basis for measuring assets


Anonymous: hiii

Answers

Answered by SanyamTaneja
2

because the value of asset is continuously changing... and if altered value will be shown...

the profits of the firm increase or decrease with huge margin...

due to which true profit will not be show by accounts!

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