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3 years ago

Which quality of an asset makes it more appropriate for the fair value principle rather than the historical cost principle?

Business

1 answer:

Alchen [17]3 years ago

8 0

Answer and Explanation:

Fair value refers to the current market price of the asset while historical cost is the cost at which the asset was acquired. Fair market value will always be higher than historical cost so it reflects the actual worth of the asset.

One of the qualities that makes valuing current assets at fair value rather than historical cost is the availability and reliability of current market price or fair value of current assets.

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In support of its effort to make the world a better place, Secret has introduced a number of new products including Secret Clini

Feliz [49]

Answer:

d) multiproduct branding

Explanation:

multi-product branding, involves releasing multiple products with the same brand name. This strategy can be simple to use.

4 0

3 years ago

Diversification is important in investing because...

Alenkinab [10]

Diversification is important in investing because "It helps you to balance your risk across different types of investments".

Explanation:

Diversification is a risk management approach that includes investing beyond or within various asset types to depreciate the ups and downs of economic exchanges. In different terms, diversification is thereby not owning all your eggs in one basket. Diversification goes by expanding properties beyond and within various asset types. Because asset types have their own individual financial rounds, when one class is making substantial profits, another may not be functioning as well. By expanding your purchases beyond and within distinct asset categories you’ll be in an immeasurable situation to offset the buoyancy of unique expenses.

8 0

2 years ago

Read 2 more answers

Suzette's husband told her, "I admire your boldness, but I'm not sure that you should open that business. I've heard that entrep

Nataly_w [17]

Answer:

Gamblers

Explanation:

Risk management can be defined as the process of identifying, evaluating, analyzing and controlling potential threats or risks present in a business as an obstacle to its capital, revenues and profits. This ultimately implies that, risk management involves prioritizing course of action or potential threats in order to mitigate the risk that are likely to arise from such business decisions.

In this scenario, Suzette's husband told her, "I admire your boldness, but I'm not sure that you should open that business. I've heard that entrepreneurs are gamblers." Suzette replied, "That's a common myth. In fact, entrepreneurs take very careful, calculated risks and are not afraid to act on those decisions."

Entrepreneurship is one of the factors of production and it is the intellectual capacity required to drive a business and the skills to develop an idea into a money making venture (business).

4 0

2 years ago

If a plaintiff can show that he has been injured, but does not have a contract, he can sometimes still recover under certain the

olya-2409 [2.1K]

Option A and C

In quasi-contract cases, the defendant received a benefit from the plaintiff. In promissory estoppel cases, the defendant made a promise that the plaintiff relied on.

<h3>Explanation:</h3>

A quasi-contract is a retroactive system among two parties who own no prior commitments to one another. It is designed by an expert to change a situation in which one individual takes something at the value of the other. The plaintiff must have provided a substantial thing or service to the added party with the expectation or assumption that mortgage would be supplied.

Promissory estoppel is a concept in contract law that hinders a character from performing reverse on a commitment even if a legitimate contract does not endure.

4 0

3 years ago

Imperial Jewelers manufactures and sells a gold bracelet for $403.00. The company’s accounting system says that the unit product

AysviL [449]

Answer:

a) Financial advantage  $2,208 

b) The company should accept the special order, as it will increase its profit by $2,208

Explanation:

The relevant costs for decision to accept the special order are

I Incremental Revenue from the special order

2. incremental variable cost

3. The cost of the special tool

Unit variable cost = 143 + 90 + 8 + 7 = $240

Note that that the increase in material cost of $8 and the variable manufacturing overhead of $7 are relevant to the special order decision. Hence they are added.

And the balance of manufacturing overhead would be incurred either way. Therefore , they are not relevant for the decision

Sales revenue from special order

(22× $361.00) 7942

Variable cost of special order

(22× $240 ) (5280 )

Cost of special tool (454)

Financial advantage  2,208 

The company should accept the special order, as it will increase its profit by $2,208

3 0

2 years ago