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The cost principle requires that when assets are acquired they be recorded at?
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∙ 13y ago
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Wiki User
∙ 13y ago
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What is the accounting principle that requires accounting information to be based on actual cost and require assets and services to be recorded initially at the cash or cash equivalent amount?
Cost principal
Why are assets recorded at cost price and not current values?
Cuz of 'going concern' principle...
Why is a plant asset recorded at cost?
Plant assets are long-lived assets acquired for use in the business and not for resale to customers. The matching principle of accounting requires that we include in the plant and equipment accounts those costs that will provide services over a period of years. During these years, the use of the plant assets contributes to the earning of revenues. The cost of a plant asset includes all expenditures reasonable and necessary in acquiring the asset and placing it in a position and condition for use in the operations of the business.
Why losses are recorded on assets side in balance sheet as per company view?
Loss account has debit balance that is why all loses and assets are recorded in assets side same as all profits and liaibities are recorded at liabilities side
Intangible assets are capitalized and amortized over periods benefited?
Matching principle
What is the accounting principle that requires accounting information to be based on actual cost and require assets and services to be recorded initially at the cash or cash equivalent amount?
Cost principal
Why are assets recorded at cost price and not current values?
Cuz of 'going concern' principle...
Why is a plant asset recorded at cost?
Plant assets are long-lived assets acquired for use in the business and not for resale to customers. The matching principle of accounting requires that we include in the plant and equipment accounts those costs that will provide services over a period of years. During these years, the use of the plant assets contributes to the earning of revenues. The cost of a plant asset includes all expenditures reasonable and necessary in acquiring the asset and placing it in a position and condition for use in the operations of the business.
What is historical concept?
historical concept means tangible assets are record on the the original price, in which an assets is acquired.
Why losses are recorded on assets side in balance sheet as per company view?
Loss account has debit balance that is why all loses and assets are recorded in assets side same as all profits and liaibities are recorded at liabilities side
Does husband have rights to assets in wife's name?
That depends on the state, the property, how and when it was acquired.
Is money earned from a portfolio of stocks owned before a marriage considered community property?
In community property states there are exceptions to the general rule that items are classified as community property. The following are the most common types of assets that are exceptions to the community property rule: * Assets acquired before marriage * Assets acquired as a personal gift * Assets acquired through inheritance So the stock portfolio and the income derived from it is separate property until you actively do something to make it community.
Intangible assets are capitalized and amortized over periods benefited?
Matching principle
Can alimoney be claimed from the husband from the property he owned prior to the marriage or only from the earnings post marriage?
Assets acquired prior to marriage are usually protected from a divorce distribution.Assets acquired prior to marriage are usually protected from a divorce distribution.Assets acquired prior to marriage are usually protected from a divorce distribution.Assets acquired prior to marriage are usually protected from a divorce distribution.
What is the account entry if an asset is acquired at no cost?
Debit Assets account and credit Capital Account
Who acquired Banc Florida assets in order to sign satisfaction of old loan?
First Union I think
What type of bankruptcy requires the liquidation of most of your assets?
Chapter 7
