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Jerry Saintfleur
on Nov 15, 2024

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In general, standard setters require that most assets be recorded using historical cost because cost is representationally faithful.

Standard Setters

Organizations or bodies responsible for establishing norms and guidelines in various fields, such as accounting or industry standards.

Historical Cost

Historical cost is an accounting principle that records assets and transactions at their original purchase price, without adjusting for inflation or market changes.

Representationally Faithful

An attribute of financial information that suggests the data accurately reflects the economic transactions and events it purports to represent.

  • Pinpoint the elements within financial statements and their evaluation metrics.
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bharath ChaitanyaNov 21, 2024
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