Q43Historical cost accounting system results in more profits on paper that leads to various consequences of over statement of profits as more taxes and hence more bonus will be demanded by the employees etc.a.Both the mentioned points are neither a merit nor a demerit of HCAb.None of the given options are correctc.The above mentioned point is a demerit of HCAd.The above mentioned point is a merit of HCA

Option a is wrong because the mentioned point is a demerit of HCA. Option b is wrong because one…

Answered: Historical cost accounting system

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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Q43

Historical cost accounting system results in more profits on paper that leads to various consequences of over statement of profits as more taxes and hence more bonus will be demanded by the employees etc.

Both the mentioned points are neither a merit nor a demerit of HCA

None of the given options are correct

The above mentioned point is a demerit of HCA

The above mentioned point is a merit of HCA

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