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2 years ago

The historical cost principle requires that when assets are acquired, they be recorded at

Business

1 answer:

Marta_Voda [28]2 years ago

7 0

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.

A similar question was answered here: brainly.com/question/14417628

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Suppose there is a simultaneous increase in the demand for rice and increase in the supply of rice. Which of the following will

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Answer:

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Explanation:

An increase in demand would lead to an increase in demand and price.

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The combined effect would lead to an increase in equilibrium quantity but the effect on equilibrium price would be indeterminate.

I hope my answer helps you

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3 years ago

An investor views a high debt-to-equity ratio and low times-interest-earns ratio as favorable signs of a company's ability to me

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False

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3 years ago

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3 years ago

An employee receives an hourly rate of $30, with time and a half for all hours worked in excess of 40 during a week. payroll dat

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4 years ago

Server Corporation is a majority-owned subsidiary of Proxy Corporation. Proxy acquired 75 percent ownership on January 1, 20X3,

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Answer:

Event Proxy Corporation Debit Credit

Journal Entry

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Cash $133,500

2 Investment in Server Corporation $22,500

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Investment in Server corporation $9,000

4 Income from Server corporation $3,000

Investment in Server corporation $3,000

Download xlsx

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4 years ago