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What is THe conept Of establishing prices?
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What is the historical cost model?
Historical cost model is a valuation process for assets wherein they are valued at cost of acquisition plus all costs incidental to cost of acquisition.
What is the dual aspect concept?
Dual Aspect concept: This state that there are two aspects of accounting, one represented by the assets of the business and the other by the claims against them. The concept states that these two aspect are always equal to each other. In other words, this is the alternate form of the accounting equation: Assets=Liabilities+Capital Dual aspect concept is known as "Double Entry Book Keeping System".
What is the budget and cost and concept of an indigenuos trader and a sole trader?
The budget and cost and concept for the indigenous trader and sole can vary depending on the company's budget. If there is not a deficit in the account then the budget cost can increase.
Are the cost and fair market value of an asset the same at the time of acquisition and in all subsequent periods?
Yes
Valuing assets at their liquidation values rather than their cost is inconsistent with the?
Haha. Kratchman...
What is the historical cost model?
Historical cost model is a valuation process for assets wherein they are valued at cost of acquisition plus all costs incidental to cost of acquisition.
What is historical concept?
historical concept means tangible assets are record on the the original price, in which an assets is acquired.
Why would there be negative goodwill on a purchaser's income statement rather than the seller's income statement?
Goodwill can be negative and arises where the net assets at the date of acquisition, fairly valued, exceed the cost of acquisition. Negative goodwill is recognized as a liability.
What is the meaning of 'historical cost accounting'?
Historical cost accounting refers to an accounting method that records assets at their original purchase price, rather than their current market value. It is based on the concept that financial transactions should be recorded at their actual cost at the time of acquisition. This method provides a clear and objective way to measure and report financial information, but it may not always accurately reflect the true value and economic condition of a company's assets.
How would you describe a replacement cost?
Replacement cost. Acquisition cost at the date of measurement, typically the present, in contrast to the earlier date of acquisition.
Is the acquisition of non current assets included in the income statement?
Acquisition amount of purchase of non-current asset is shown in balance sheet while any profit or loss incurred for purchase of assets is shown in income statement.
Why you use accumulated depreciation and not reduce depreciation from asset directly?
Basically the concept is to provide more detailed information and a method of checks and balances against the depreciation. The original acquisition cost of the asset is preserved this way and always appears until the asset is disposed. If you simply reduced the asset every year by the depreciation amount there would be less information for outsiders to understand why the asset keeps decreasing, or have the ability to distinguish whether you have new, low cost assets or a bunch of ancient assets which are almost completely depreciated.
Which budget summarizes management future plans for the acquisition of fixed assets?
Capital expenditures budget.
Business Acquisition ?
form_title= Business Acquisition form_header= Questions about your business acquisition? Talk to the experts. What business are you acquiring?*=_ [50] What is the cost of the acquisition?*=_ [50] How long have the talks been about the acquisition?*=_ [50]
What does the concept of merger acquisition refer to?
A "merger" is what happens when two companies join to become one company. An "acquisition" is when one company purchases another company. An acquisition can also be called a "takeover".
What Merger type in which both stock and assets are purchased?
In a scheduled assets and liabilities acquisition the buyer only obtains the scheduled assets and scheduled liabilities. In a Stock acquisition the buyer will own the stock and have ownership interest in the assets through the stock. The corporation also has responsibility for all the liabilities both real and contingent. In a stock for stock merger the ultimate owners of the stock would each have their pro-rata ownership interest in the assets.
In a firm where assets are the major cost how is profit maximized?
By increasing revenues or the cost of the assets.
