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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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When might be the best time to start saving for retirement?

Delvig [45]

It would be d bc it not everyone does all of the things they are saying

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3 years ago

Read 2 more answers

The United States will import 3 million CDminusRom drives if ________ tax per CDminusRom drive is levied on imported CDminusRom

Brums [2.3K]

Answer:

A. no

Explanation:

If there is no tax rate per CDminusRom, to import it will cost less. It is easier when there is no tax rate attached. Therefore, The United States will import 3 million CDminusRom drives if ____NO____ tax per CDminusRom drive is levied on imported CDminusRom drives. Hence, the answer is A

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2 years ago

Blossom, Inc. decided to establish a petty cash fund to help ensure internal control over its small cash expenditures. The follo

Crazy boy [7]

Answer:

The Journal entry with their narrations shown below:-

Explanation:

The Journal Entry is shown below:-

1. Petty cash Dr, $271

To Cash $271

(Being establishment of petty cash fund is recorded)

2. Freight-in Expenses(delivery charges) Dr, $76

Supplies expenses Dr, $41

Postage expenses Dr, $49

Loan to employees (Accounts receivable) Dr, $33

Miscellaneous expenses Dr, $52

Cash short and over Dr, $8

To Cash $259

($271 - $12)

(Being disbursement of cash is recorded)

3. Petty cash Dr, $116

To cash $116

(Being increase in petty cash is recorded)

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3 years ago

A company is trying to decide whether to sell partially completed goods in their current state or incur additional costs to fini

Ghella [55]

Answer:

b-the costs incurred to process the units to this point

Explanation:

Since in the question it is given that the company want to decide whether to sell partially completed goods or should incurred extra cost in order to finished the goods and sells them as a completed unit

So there should be the decision regarding selling price for the units that are completed, the selling price for the units that are partially completed and the cost i.e to be incurred for finishing the units

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2 years ago

On September 1 of the current year, Scots Company experienced a flood that destroyed the company's entire inventory. Because the

dangina [55]

Answer:

$82,580

Explanation:

We can calculate the estimated amount of inventory destroyed in the flood by deducting the cost of goods sold by the cost of goods available for sale.

DATA

Beginning Inventory = $215,950

Inventory purchased = $192,730

Sales = $543,500

Calculation

Inventory destroyed Iestimated) = Cost of Goods available for sale - Cost of Goods Sold

Inventory destroyed Iestimated) = $408,680 - $326,100

Inventory destroyed Iestimated) = $82,580

Working

Cost of Goods available for sale = Beginning Inventory + Inventory purchased

Cost of Goods available for sale = $215,950 + $192,730

Cost of Goods available for sale = $408,680

Cost of Goods Sold = Sales - Gross Profits

Cost of Goods Sold = $543,500 - ($543400 x 40%)

Cost of Goods Sold = $ 326,100

4 0

3 years ago