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historical concept assumes that the amount of money spend when acquiring an asset remains unchanged over time. That is the purchasing power of the currency does not change over time. Theses prices are therefore not adjusted upward for inflation
the prudence concept requires that an anticipated loss be fully included through a charge in the income statement while an anticipated profit should not be included until it is fully realized
the matching concept requires that revenues be matched with expenses
Faimus answered the question on February 20, 2018 at 07:29
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