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Issue:

Business

 

Written by:

Marvin A

 

Date added:

January 28, 2015

 

Level:

University

 

Grade:

A

 

No of pages / words:

5 / 1166

 

Was viewed:

421 times

 

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Essay content:

Historical cost means what it cost the company for the item. It is not fair market value. This means that if a company purchased a building, it is recorded on the balance sheet at its historical cost. It is not recorded at fair market value, which would be what the company could sell the building for in the open market...
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It is not recorded at fair market value, which would be what the company could sell the building for in the open market. Criticisms of the historical costs method Historical cost method, over a period of time has been subject to many criticisms, especially as it considers the acquisition cost of an asset and does not recognise the current market value...
displayed 300 characters

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