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Question Practice

Why is historical cost used in financial statements?

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 is historical cost used in...

Single Answer MCQ
Q-00082598

Why is historical cost used in financial statements?

1

To reflect current market conditions

2

To provide a consistent measurement basis

3

To avoid taxation

4

To maximize profits

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