why all losses are not included in accounting like when we keep cash in our hand we are losing an opportunity to invest it somewhere else. does it mean that not all loses are included in accounting
3 Replies
Yasaswi Gomes new
(Finance )
(4514 Points)
Replied 10 January 2023
We only repory 5 elements_ assets
Liabilities
Expenses and losses
Incomes and gains
Equity
Your question does not fall under anyof the above. Yoir asking aboit opportunity costs in investment.
Yasaswi Gomes new
(Finance )
(4514 Points)
Replied 10 January 2023
To.think of it in a different way
Revenue losses eg inventory losses or operating losses
Capital losses eg machinery impairment
Equity losses eg loss on issue of shares
Are the only losses we consider in accounting
sabyasachi mukherjee
(27579 Points)
Replied 11 January 2023
Whatever you hv asked for is opportunity cost. Losses are accounted for in accounting standards.
It is imperative to understand the chronology of transactions.
It is imperative to understand the chronology of transactions.
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