What are two important reasons to base the valuation of assets and liabilities on their historical cost?

Question:

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Intermediate Accounting

ISBN: 978-0077400163

6th edition

Authors: J. David Spiceland, James Sepe, Mark Nelson

See More Books

Question Posted: May 24, 2013 09:23 AM

See More Questions

Tinkle-Tinkle Glass Company makes glass globe paperweights for desks. The company uses a job-order cost system and predetermined overhead rates to apply manufacturing overhead costs to jobs. The...
The measurement of assets and liabilities on the balance sheet is frequently a secondary goal to income determination. As a result, various measurement techniques are used to disclose assets and...
What are the major categories of assets and liabilities on a balance sheet? Briefly explain each category.
The measured and corrected cylinder pressures around IVC (210CA) are given in the table. Find out the reference pressure ppeg (the manifold air pressure) at IVC, using 5 point half-width (n=10) for...
Describe the types of modifications necessary to adapt the frequent subgraph mining algorithm to handle: (a) Directed graphs (b) Unlabeled graphs (c) Acyclic graphs (d) Disconnected graphs For each...
The diagram shown below is a simplified version of the carbon cycle. a. Name the processes A, B, C and D. b. Write balanced chemical equations to represent the processes taking place in A and B. c....
Name the strongest benefit and the greatest weakness of agile development methodologies.
The Cubbie Inn is a restaurant in DeKalb, Illinois. It specializes in deluxe sandwiches in a moderate price range. Bill Michael, the manager of Cubbie Inn, has determined that during the last 2 years...
Case Study: Aldi is a discount supermarket. It is one of the most popular Aldi stores in Wollongong, making an average of $100,000 in weekly sales. The store currently operates with 26 employees,...
Leo is a wholesaler. He has little knowledge of accounting. He prepared the following income statement which contains some errors. Prepare a corrected income statement for Leo for the year ended 30...
What are the four key broad accounting principles that guide accounting practice?
Describe the two criteria that must be satisfied before revenue can be recognized.
Locate the centroid of the volume obtained by rotating the shaded area about the x axis. y=(1-) 1m -3m
What is one of the risks of keeping too many spare parts in inventory?
This question below is an example of a: How likely are you to purchase leggings in the next six months? 1= Definitely will purchase 2= Probably will purchase 3= Might or might not purchase 4=...
Currently I am paying $60.00 a month for my service. I would like to upgrade to the $80.00 service package because my new employer offers 20% discount with your company. What would be the cost...
Annual Income Tax rate in Wachanda is as follows: From $0 - $20,000 - 5% From $20,000 - $50,000 - 10% Anything more than 50,000 - 20% How much tax do you pay if you make $75,000 ?
Answer provided in above link is wrong. Franking Credit has not been added to net profit. Also how much normal loss can be carried forward ?...
Calculate the hydrogen ion concentration for milk of magnesia if the pH is 10.
Provide an example of an aggressive accounting practice. Why is this practice aggressive?
Which of the following statements concerning the accounting and financial reporting for capital assets is false? a. Capitalization thresholds differ among governments and often within governments...
For each of the following situations, indicate whether you agree or disagree with the financial reporting practice employed and state the basic assumption, constraint, or accounting principle that is...
For each of the following situations, indicate whether you agree or disagree with the financial reporting practice employed and state the basic assumption, constraint, or accounting principle that is...
For each of the following situations, state whether you agree or disagree with the financial reporting practice employed, and briefly explain the reason for your answer. 1. The controller of the...
You have a business worth $1,000,000 and other assets (including your home) worth an additional $750,000. What is the recommended automobile insurance policy that you should carry to be FULLY...
Republic Services and Waste Management company Compare the companies' long term Revenue, Gross Profit, Operating Profit) and Net Income and related growth trends. What is the average three year...
A young couple own a home in NJ. They would like to have Homeowner Insurance coverage for their home in NJ, in case of frozen plumping and damage form heavy snow or power surges. Which Homeowner's...

What are two important reasons to base the valuation of assets and liabilities on their historical cost?

Question:

Step by Step Answer:

Two important reasons to base valuation on historical cost are 1 Historical cost provides ...View the full answer

Intermediate Accounting

Students also viewed these Accounting questions