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4 June, 03:27

In preparing a balance sheet why do you think standard accounting practice focuses on historical cost rather tham market value

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  1. 4 June, 06:09
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    Historical costs can be objectively and precisely measured, whereas market values can be difficult to estimate because they really dependant on market's performance.

    Therefore, to create a more accurate measurement of company's financial condition, standard accounting practice put more focus on historical cost rather than market value
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