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Give the Major Disadvantage of Disregarding the Cost Concept and Constantly

question 163

Essay

Give the major disadvantage of disregarding the cost concept and constantly revaluing assets based on appraisals and opinions.


Definitions:

Stock Price

The present cost at which a company's share is traded in the market.

Earnings Retention

The portion of a company's profits that is not distributed to shareholders as dividends but is kept by the company to reinvest in its core business or to pay debt.

Annual Dividend

represents the total dividend payment a company distributes to its shareholders within a given fiscal year.

Market Value

The cost for buying or selling assets or services in the marketplace at this time.

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