Economics · Accounting Principles and Misstatements

Which of the following statements regarding accounting standards and principles are correct? A. According to AS 13, current investments are valued at the lower of cost and fair value, while long-term investments are typically recorded at cost. B. The Matching Concept requires that closing stock be deducted from purchases to ensure that only the cost of goods actually sold is charged against the revenue of that period. C. In the Indirect Method of preparing a Cash Flow Statement under AS 3, depreciation is subtracted from the net profit because it is a non-cash expense. D. An Error of Principle, such as recording a capital expenditure as a revenue expense, causes the Trial Balance to disagree because the amount is debited to the wrong category of account. Choose the most appropriate answer from the options given below: