When calculating ratios that involve fixed assets, the use of historical costs does not affect the ratios.

Name: When calculating ratios that involve fixed assets, the use of historical costs does not affect the ratios.
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Quizplus · Accepted Answer

Using historical costs for fixed assets can affect ratios because it does not account for changes in the value of assets over time, such as depreciation or market value adjustments, leading to potentially misleading financial ratios.

When Calculating Ratios That Involve Fixed Assets, the Use of Historical