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Question Practice

Why are recorded facts in financial statements often based on historical cost?

Attempt the question, check the explanation, and continue with similar questions to build confidence before exams.

MCQ_SA
CBSE
Class 12
Accountancy
Accountancy Part - II
Financial Statements of a Company
Question Bank

Why are recorded facts in fina...

Single Answer MCQ
Q-00082629

Why are recorded facts in financial statements often based on historical cost?

1

They reflect the current market conditions

2

Historical cost is simpler and less subjective

3

They need to be readily available in real-time

4

This is a legal requirement

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