Final answer:
Financial statements must indeed include both the cost and accumulated depreciation of plant assets, offering a clear view of the asset's value and the company's financial status.
Step-by-step explanation:
It is necessary to report both the cost and accumulated depreciation of plant assets in the financial statements. The cost of a plant asset includes all expenditures necessary to acquire an asset and make it ready for its intended use, whereas accumulated depreciation represents the total amount of depreciation expense that has been recorded against a fixed asset up to a specific point in time. This information provides a complete picture of the asset's value and the company's financial position.
The accumulated depreciation account is used to keep track of the total depreciation expense accumulated over the lifetime of the asset. By reporting both the cost and accumulated depreciation, financial statements provide a more accurate representation of the company's investments and the depreciation of those assets.