The historical cost principle states that activities of an entity are to be kept separate and...
The historical cost principle states that
| activities of an entity are to be kept separate and distinct from its owner. |
| assets should be recorded at their cost. |
| only transaction data capable of being expressed in terms of money be included in the accounting records. |
| assets should be initially recorded at cost and adjusted when the fair value changes. |
Homework Answers
Answer: Assets should be recorded at their cost.
The historical cost principle states that an asset (fixed asset) should be recorded at its original cost (purchase cost) on the balance sheet.
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The historical cost principle states that
activities of an entity are to be kept separate and...
Question Completion Status: F. Should I buy into this company? QUESTION 27 Match the statements with...
Question Completion Status: F. Should I buy into this company? QUESTION 27 Match the statements with the appropriate terms the statement describes. A. v A revenue not yet recognized; collected in advance for $1,200. A. Unearned Revenue Office supplies paid for and on hand that will be used in the next D. V period. A v Unrecorded interest on a notes payable of $180. B. Accrued Revenue C. Accrued Expense D. Insurance paid in advance. D. Prepaid Expense 8. v...
Question 4.20 points) Match the statements below with the items below: a.) Economic entity assumption b.)...
Question 4.20 points) Match the statements below with the items below: a.) Economic entity assumption b.) Time period Assumption c.) Full Disclosure principle d.) Cost principle e.) Revenue recognition principle f.) Monetary unit assumption g.)Going concern assumption h.) Matching principle i.) Consistency j.) Reliability - A company uses the same accounting methods from year to year. ____ The information is free of error and bias. The economic life of a business can be subdivided into months, quarters or a year....
ki , survey of Accounting, le Help System Announcements Historical cost principle Materiality Monetary unit assumption...
ki , survey of Accounting, le Help System Announcements Historical cost principle Materiality Monetary unit assumption Exercise 4-2 Identify the accounting concept that describes each situation below. Do not use any concept more than once. Periodicity assumption (a) is the rationale for why plant assets are not reported at liquidation value. (Do not use the historical cost principle.) Revenue recognition principle (b) indicates that personal and business recordkeeping should be separately maintained. Full disclosure principle (c) Ensures that all relevant...
help please Match the statements below with the items below: a.) Economic entity assumption b.) Time...
help please
Match the statements below with the items below: a.) Economic entity assumption b.) Time period Assumption c.) Full Disclosure principle d.) Cost principle e.) Revenue recognition principle e.) Rey Principle Principle 1.) Monetary unit assumption 8.) Going concern assumption h.) Matching principle 1.) Consistency j.) Reliability - A company uses the same accounting methods from year to year. The information is free of error and bias. The economic life of a business can be subdivided into months, quarters...
Instructions: Designate the best answer for each of the following questions. - 1. "GAAP" refers to...
Instructions: Designate the best answer for each of the following questions. - 1. "GAAP" refers to a. General Accounting and Auditing Principles. b. Guidelines for American Accounting Procedures. c. General Association of Accounting Practitioners. d. None of these answer choices are correct. 2. The requirement that only transaction data capable of being expressed in terms of money be included in the accounting records relates to the a. historical cost principle. b. monetary unit assumption. c. economic entity assumption. d. both...
1) Entity N follows the revenue recognition principle. It services a vehicle on September 30. The...
1) Entity N follows the revenue recognition principle. It services a vehicle on September 30. The customer picks up the vehicle on October 1 and mails the payment to Entity N on October 7. Entity N receives the check in the mail on October 9. When should Entity N show that the revenue was recognized? a) september 30th b) october 7th c) october 1st d) october 9th 2. Entity M signed a six-month note payable in the amount of $60,000...
Match the accounting principle on the left with the appropriate statement on the right. ____ Entity...
Match the accounting principle on the left with the appropriate statement on the right. ____ Entity assumption a. All relevant information must be presented in the financial statements. ____ Materiality b. X Corp. uses FIFO every year to value its inventory. ____ Full disclosure c. Carefully make estimates to avoid overstating assets or net income. ____Consistency d. Sales are recorded when the product is provided, not when we get paid. ____ Historical cost e. The business plans to continue indefinitely....
Options: Correctness: Correct or Incorrect Principle: a. Faithfull representation b. Faithful representation (Full disclosure) Materiality c....
Options:
Correctness: Correct or Incorrect
Principle:
a. Faithfull representation
b. Faithful representation (Full disclosure) Materiality
c. Faithful representation (Net asset principle)
d. Historical Cost Measurement
e. Historical cost measurement and Net asset principle, Full
disclosure materiality and separate-entity
f. Matching; Comparability
g. Matching; Time-period assumption
h. Revenue and Historical cost measurement
i. Revenue and matching; Faithful representation and Freedom
from bias
j. Revenue recognition
k. Separate-entity
l. Time-period assumption
The following list of statements poses conceptual issues: Required: 1 and...
Match the accounting principle on the left with the appropriate statement on the right. Entity assumption...
Match the accounting principle on the left with the appropriate statement on the right. Entity assumption a. All relevant information must be presented in the financial statements. Materiality b. X Corp. uses FIFO every year to value its inventory. Full disclosure c. Carefully make estimates to avoid overstating assets or net income. Consistency d. Sales are recorded when the product is provided, not when we get paid. Historical cost e. The business plans to continue indefinitely. Conservatism f. John's personal...
Exercise 2-06 For each situation that follows, identify the foundational principle that best describes it. (a)...
Exercise 2-06 For each situation that follows, identify the foundational principle that best describes it. (a) Allocates expenses to revenues in the proper period. (b) Indicates that market value changes after the purchase are not recorded in the accounts unless impairment exists. (Do not use the revenue recognition principle.) (c) Ensures that all relevant financial information is reported. (d) Is why plant assets are not reported at their liquidation value. (Do not use the historical cost principle.) Full disclosure Revenue...
Question Completion Status: F. Should I buy into this company? QUESTION 27 Match the statements with the appropriate terms the statement describes. A. v A revenue not yet recognized; collected in advance for $1,200. A. Unearned Revenue Office supplies paid for and on hand that will be used in the next D. V period. A v Unrecorded interest on a notes payable of $180. B. Accrued Revenue C. Accrued Expense D. Insurance paid in advance. D. Prepaid Expense 8. v...
Question 4.20 points) Match the statements below with the items below: a.) Economic entity assumption b.) Time period Assumption c.) Full Disclosure principle d.) Cost principle e.) Revenue recognition principle f.) Monetary unit assumption g.)Going concern assumption h.) Matching principle i.) Consistency j.) Reliability - A company uses the same accounting methods from year to year. ____ The information is free of error and bias. The economic life of a business can be subdivided into months, quarters or a year....
ki , survey of Accounting, le Help System Announcements Historical cost principle Materiality Monetary unit assumption Exercise 4-2 Identify the accounting concept that describes each situation below. Do not use any concept more than once. Periodicity assumption (a) is the rationale for why plant assets are not reported at liquidation value. (Do not use the historical cost principle.) Revenue recognition principle (b) indicates that personal and business recordkeeping should be separately maintained. Full disclosure principle (c) Ensures that all relevant...
help please
Match the statements below with the items below: a.) Economic entity assumption b.) Time period Assumption c.) Full Disclosure principle d.) Cost principle e.) Revenue recognition principle e.) Rey Principle Principle 1.) Monetary unit assumption 8.) Going concern assumption h.) Matching principle 1.) Consistency j.) Reliability - A company uses the same accounting methods from year to year. The information is free of error and bias. The economic life of a business can be subdivided into months, quarters...
Instructions: Designate the best answer for each of the following questions. - 1. "GAAP" refers to a. General Accounting and Auditing Principles. b. Guidelines for American Accounting Procedures. c. General Association of Accounting Practitioners. d. None of these answer choices are correct. 2. The requirement that only transaction data capable of being expressed in terms of money be included in the accounting records relates to the a. historical cost principle. b. monetary unit assumption. c. economic entity assumption. d. both...
Options:
Correctness: Correct or Incorrect
Principle:
a. Faithfull representation
b. Faithful representation (Full disclosure) Materiality
c. Faithful representation (Net asset principle)
d. Historical Cost Measurement
e. Historical cost measurement and Net asset principle, Full
disclosure materiality and separate-entity
f. Matching; Comparability
g. Matching; Time-period assumption
h. Revenue and Historical cost measurement
i. Revenue and matching; Faithful representation and Freedom
from bias
j. Revenue recognition
k. Separate-entity
l. Time-period assumption
The following list of statements poses conceptual issues: Required: 1 and...
Match the accounting principle on the left with the appropriate statement on the right. Entity assumption a. All relevant information must be presented in the financial statements. Materiality b. X Corp. uses FIFO every year to value its inventory. Full disclosure c. Carefully make estimates to avoid overstating assets or net income. Consistency d. Sales are recorded when the product is provided, not when we get paid. Historical cost e. The business plans to continue indefinitely. Conservatism f. John's personal...
Exercise 2-06 For each situation that follows, identify the foundational principle that best describes it. (a) Allocates expenses to revenues in the proper period. (b) Indicates that market value changes after the purchase are not recorded in the accounts unless impairment exists. (Do not use the revenue recognition principle.) (c) Ensures that all relevant financial information is reported. (d) Is why plant assets are not reported at their liquidation value. (Do not use the historical cost principle.) Full disclosure Revenue...
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