1. What is meant by the following statement? The items depicted in financial statements are merely representations of the real thing. 2. What is the meaning of the following statement? The choice...

1. What is meant by the following statement? The items depicted in financial statements are merely representations of the real thing.

2. What is the meaning of the following statement? The choice between historical cost and current value is a good example of the trade-offs in accounting that must sometimes be made.