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6- Which of the following criticisms does NOT apply to historical cost financial statements during a period of rising prices? • They are difficult to verify because transactions could have happened many years ago They contain mixed values; some items are at current values and some are at out of date values They understate assets and overstate profit They overstate gearing in the statement of financial position.

6- Which of the following criticisms does NOT apply to historical cost financial statements during a period of rising prices? • They are difficult to verify because transactions could have happened many years ago They contain mixed values; some items are at current values and some are at out of date values They understate assets and overstate profit They overstate gearing in the statement of financial position.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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6- Which of the following criticisms does NOT apply to historical cost financial statements during a period of rising prices? They are difficult to verify because transactions could have happened ● many years ago • They contain mixed values; some ● items are at current values and some are at out of date values They understate assets and overstate profit They overstate gearing in the statement of financial position. ● ●
Transcribed Image Text:6- Which of the following criticisms does NOT apply to historical cost financial statements during a period of rising prices? They are difficult to verify because transactions could have happened ● many years ago • They contain mixed values; some ● items are at current values and some are at out of date values They understate assets and overstate profit They overstate gearing in the statement of financial position. ● ●
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