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| Topic: |
Business
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| Number of pages / Number of words: |
6 / 1483 |
Essay's paper body
This is a useful method of accounting as it is good as “it permits accounts to be produced by collecting information about business transactions….amounts are determined by the transaction as opposed to by individuals†. This therefore means that there is no opportunity for figures to be based on judgments or the possible abuse of individuals, thus making it more reliable in that aspect...
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This therefore means that there is no opportunity for figures to be based on judgments or the possible abuse of individuals, thus making it more reliable in that aspect.
This is one of the reasons why historic cost is still a main basis for accounting. However, large problems can occur when using the historic cost method...
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