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gregori [183]
3 years ago
8

The historical cost concept reflects the fact that financial accounting practice favors:________.

Business
1 answer:
Aliun [14]3 years ago
6 0

Answer:

Reliability over relevance

Explanation:

The historical cost principle states that assets must be recorded at purchase cost, disregarding any change in their market value. E.g. you purchased a land lot 10 years ago for $100,000 and now it is worth $500,000. It must be recorded at $100,000 since that was its original purchase cost.

Accounting tries to be as exact as possible, and if the carrying values started to change every period or even month by month because the accountant believed that the market value changed, then it would be a mess. Accountancy is not supposed to be a game of guessing, it is supposed to be as exact and reliable as possible.

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Hope this helps!!!

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3 years ago
When union representatives negotiate with employers for better wages and working conditions, they are involved in __________?
kifflom [539]
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3 years ago
Your city newspaper publishes a "Best of" poll that lists its readers' favorite restaurants. Mundo Bar and Grill is ranked as th
jeka94

Answer:

The correct answer is the option C: give too much weight to a small number of vivid observations.

Explanation:

To begin with, in the case that a close friend had told you that he had a bad experience in a certain place, a restaurant in particular this time, does not states the fact that it will always be like that for every person that goes to that place because it may have been a bad day for the employees and that impacts at their work while if you go any other day every detail is taking care nicely. Therefore that the people give too much  weight to small number of vivid observations due to the fact that the article published in the newspaper must have been made with over dozens of observations and comments, not just one, and the major agreement is that those places are good ones to go to eat.

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3 years ago
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3 years ago
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