Chapter 25 Flashcards
1
Q
What are the three limitations of accounting statements?
A
1) Limitations due to the historic cost factor
2) Limitations due to difficulties of definition
3) Limitations due to non-financial aspects
2
Q
The value placed on an asset in the statement of financial position based on the original cost at which the asset was acquired
A
Historic cost
3
Q
Does historic cost reflect the market value of the asset?
A
Maybe not
4
Q
What does IAS stand for?
A
International Accounting Standards
