The historical cost principle requires that when assets are acquired, they be recorded at cost.
The historical cost principle is an accounting principle under the US GAAP. It entails recording the cost of an asset on the balance sheet at the cost with which the asset was purchased regardless of the changes in the value of the asset.
For example, if a machine was purchased at a cost of £2000. If the historical cost principle is used, the machine would be recorded at £2000 on the balance sheet.
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Answer:
Intrinsic Value = $33.23
Explanation:
<em>The intrinsic value of a stock using the dividend valuation model is the present value of the the future dividend expected from the stock discounted at the required rate of return. </em>
This model is represented as follows
D(1+g)/(r-g) = P
Price, D- dividend payable in now, ke- required rate of return, g- growth rate
D- 3.12 , g-6.50% r-6.25%
Intrinsic value = (3.12× 1.065)/(0.1625-0.065)= $33.228
Intrinsic Value = $33.23
Answer:
<u><em>Philanthropy</em></u>
Explanation:
Target donates millions of dollars each year in education - related grants for arts and cultural experiences , field trips , and reading programs , as well as grants to promote public safety . This is an example of<u> Philanthropy.</u>
Philanthropy means giving things like money or any kind of gift to people for are need of that.
Philanthropy is good , it helps in solving the social problem .
There is a little difference is charity and Philanthropy , that is , Charity is short - term while Philanthropy is long - term. Charity tends to be emotional and have immediate response on the other hand philanthropy is more strategical .
<em>Philanthropy always focuses on eliminating social problem.</em>
Answer:
<u>Economies Of Scale</u>
Explanation:
Average total cost(ATC) refers to total cost incurred per unit of output produced.
ATC at level of 90 canisters = $1050/90 canisters = $ 11.67 per canister
ATC at level of 120 canisters= $1200/120 canisters = $10 per canister
As can be seen, the average total cost has reduced.
Economies of scale is defined as the phenomena when in the long run, average total cost reduces along with an increase in the output.
The reasons attributable to this phenomena being, increase in labor efficiency and better utilization of resources coupled with bulk quantity of inputs purchased at a lower cost, which lowers the cost of production in the long run.
Answer:
B) Accounts Receivable
Explanation:
Based on the information provided within the question it can be said that as of December 31st the account that should appear on the balance sheet are accounts receivable. These are claims for a payment for goods or services provided by the firm, and are usually sent in the form of invoices to the customer that needs to pay them in a given amount of time.