The Modern Enterprises reported all assets in the balance sheet at current market value. This action is a violation of:

Realization Concept

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Materiality Concept

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Cost Principle or Historical Cost Concept

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Accounting Period Concept

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Solution

The correct option is C
Cost Principle or Historical Cost Concept

According to Cost Principle or Historical Cost Concept, all assets are recorded in the books of accounts at their purchase price, which includes cost of acquisition, transportation and installation and not at its market price.

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Similar questions

Explain the historical cost concept. How is depreciation and book value of asset calculated as per this concept?

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