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The cost principle is the concept a company should really only file its assets, liabilities, and equity investments at their original order prices.
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The monetary unit theory is the concept a company must only file transactions that can be declared to get in the conditions of the unit of currency. It is straightforward sufficient then to file the purchase of a set asset because it was acquired for a specific price.
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This can be the rationale this issue can also be termed as heart of business enterprise. For this reason, a few of the vital place of accounting are:
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