Answer:
Historical cost principle
Explanation:
Assets must be recorded at cost value, not market value. When you record an asset, you cannot change its value every period, you have to keep using the historical value. This is why we use a separate account to record accumulated depreciation of assets, so that the purchase cost is always constant, but the net carrying value will vary depending on depreciation expense.
Market value changes and can be very volatile. Imagine a house, whose initial value was $300,000, then it increased to $500,000 but the market went down and its value was $350,000. It would be a mess to change the value and pay capital gains taxes, or then report a loss.
Answer:
B. An online bank has lower operating costs than a retail bank
Answer:
3. (d) Minimum 1, Maximum *
4. (a) Minimum 0, Maximum 1
5. (c) Minimum 1, Maximum 1
6. (b) Minimum 1, Maximum 1
7. (b) Minimum 0, Maximum *
8. (e) None of these is a correct addition to the diagram.
Explanation:
Answer:
The correct answer is letter "C": decrease.
Explanation:
Usually, military spending tends to <em>slow economic growth</em> since it discourages private investment which at the same time causes employment rates to drop. According to different researches, it is said that only a 1% increase in military spending could lead to up to 9% of economic growth decrease.
Answer:
total debt ratio = 0.3532
Explanation:
given data
total assets = $485,390
net fixed assets = $250,000
current liabilities = $23,456
long-term liabilities = $148,000
to find out
total debt ratio
solution
we get here total debt ratio that is express as
total debt ratio = ( current liabilities + long-term liabilities ) ÷ total assets ........1
put here value we get
total debt ratio = 
total debt ratio = 0.3532
