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Why is it better to refer to the costs rather than values of assets such as plant or inventories?
Wiki User
∙ 9y ago
The values of assets such as plants or inventories can change elastically. Using costs instead of values for elastic assetsÊis more accurate for calculating expenses.
Wiki User
∙ 9y ago
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Why are assets recorded at cost price and not current values?
Cuz of 'going concern' principle...
What is revaluation account?
revalutation account is opened to record the revaluation of assets and liabilities.the profit or loss arising because of revaluation is transfered to old partners capital account in their old profit sharing ratio. Companies from time to time check the values of assets and liabilities for there book values and if there is some changes in book values of assets and liabilities that revaluations are made through revaluation account which are later charge to profit and loss account or transferred to reserve account.
How are assets classified?
That question makes more sense if it is more specific. But to answer that simply, assets are considered as entity's resources so it is recorded in the balance sheet statement with the title ASSETS, and it is broken down into account titles that make up the ASSETS like Cash, Accounts receivable, Marketable Securities, Inventory, etc. Everything that the entity possesses with or without physical substance and that which will bring economic inflows to the entity will be part of Assets. Generally, those mentioned accounts are measured based on their market values or face values.
Is an advantage of balance sheet numbers that the assets reflect current market values?
Are you smoking rock.....go back to school.
Does the word debit mean an increase?
Yes, in the Balance Sheet; Assets are on the Debit side of the ledger, a Debit increase occurs when there is a rise in asset values.
Valuing assets at their liquidation values rather than their cost is inconsistent with the?
Haha. Kratchman...
What does values version mean in Excel?
It is the usual way when you see values rather than formulas in cells.It is the usual way when you see values rather than formulas in cells.It is the usual way when you see values rather than formulas in cells.It is the usual way when you see values rather than formulas in cells.It is the usual way when you see values rather than formulas in cells.It is the usual way when you see values rather than formulas in cells.It is the usual way when you see values rather than formulas in cells.It is the usual way when you see values rather than formulas in cells.It is the usual way when you see values rather than formulas in cells.It is the usual way when you see values rather than formulas in cells.It is the usual way when you see values rather than formulas in cells.
What are the two types of assets that companies own?
There are at least three different ways that assets can be grouped into two separate categories: Current and Non-current (or Long-Term assets): Current assets are cash and items that the company expects to convert into cash during the next accounting period (such as trade accounts receivable.) Non-current assets are those from which future economic benefits are expected flow into the business over the next several accounting periods (e.g., factory and equipment) Tangible and Intangible: Tangible assets can be touched and seen: Cash, factory building, inventories, etc. Intangible assets generally legal rights that cannot be touched: franchise rights, goodwill, patents, and trademark rights are intangible assets. Monetary and non-monetary: Monetary assets are denominated in fixed monetary amounts that will not change over time ($500 cash in a bank account, or a note receivable for $4,000). Non-monetary assets have values that are not fixed in definite dollar amounts (e.g., equity securities owned, or inventories). If management is dishonest in preparing the company's financial statements, there may be a fourth classification of assets, discovered only when the financial statements are audited: Existent and Non-Existent Assets. But a balance sheet containing nonexistent assets will not be signed off on by any public accountant who wants to keep his CPA licence. :) And managers who prepare fraudulent financial statement can serve jail time.
Why are assets recorded at cost price and not current values?
Cuz of 'going concern' principle...
Is it better to use book value versus market values of debt and equity rather than book values to calculate a firms Weighted Average Cost of Capital?
HIII. I am taking accounting and in my opinion market values of debt is way better to calculate a firms weight average cost of capital... hope i helped even just a little
How do you value an estate?
The first step is a complete inventory of the assets. The law provides guidelines on what date the valuation is to be applied to. In many cases a professional can be brought in to value the assets. Reals estate values and stock values can be fairly easily determined based on the market.
What is revaluation account?
revalutation account is opened to record the revaluation of assets and liabilities.the profit or loss arising because of revaluation is transfered to old partners capital account in their old profit sharing ratio. Companies from time to time check the values of assets and liabilities for there book values and if there is some changes in book values of assets and liabilities that revaluations are made through revaluation account which are later charge to profit and loss account or transferred to reserve account.
How are assets classified?
That question makes more sense if it is more specific. But to answer that simply, assets are considered as entity's resources so it is recorded in the balance sheet statement with the title ASSETS, and it is broken down into account titles that make up the ASSETS like Cash, Accounts receivable, Marketable Securities, Inventory, etc. Everything that the entity possesses with or without physical substance and that which will bring economic inflows to the entity will be part of Assets. Generally, those mentioned accounts are measured based on their market values or face values.
What does risk adjusted assets mean?
The sum of the weighted dollar values as computed above is called "risk-adjusted assets," and used as the denominator for computation of Asset-Quality (equity-to-asset ratio),... === ===
What is an asessment of personal assets and liabilities?
An assessment of personal assets and liabilities lists all your assets (like your home, car, money in the bank, etc.) and your liabilities (debt in the form of loans, house mortgage, etc.). The asset's values are totalled and the liabilities are totalled. Comparing you total assets and total liabilities will show your financial situation.
What is monetary assets?
A valued property or a thing that holds a price, mostly cash. These have fixed values that are unaffected by inflation or deflation.
Is an advantage of balance sheet numbers that the assets reflect current market values?
Are you smoking rock.....go back to school.
