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Answer Posted / maddi vinod
Accounting is based on historical cost / values.
The real values such as Brands (Self-developed), human
assets, Reputation, hold on the market , credit of
Organisations etc can not be accounted.
Financials only shows the cost at which assets are bought/
constructed/ acquired net off depreciation even thought
there are possibilities of appreciation of assets due to
inflationery effects.
Theses are the few limitations.
| Is This Answer Correct ? | 14 Yes | 3 No |
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