Limitations of the Accounting Equation

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Does Not Account for Market Value
• It is historical cost-based and does not reflect the present market value of assets or liabilities.
Does Not Account for Market Value
• It is historical cost-based and does not reflect the present market value of assets or liabilities.
Does Not Account for Market Value
• It is historical cost-based and does not reflect the present market value of assets or liabilities.
Does Not Account for Market Value
• It is historical cost-based and does not reflect the present market value of assets or liabilities.
Does Not Account for Market Value
• It is historical cost-based and does not reflect the present market value of assets or liabilities.