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Essay

Historical Cost

Essay specific features

 

Issue:

Business

 

Written by:

Stephanie H

 

Date added:

January 26, 2016

 

Level:

University

 

Grade:

A

 

No of pages / words:

5 / 1241

 

Was viewed:

9149 times

 

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Essay content:

The historical cost accounting convention is an accounting technique that values an asset for balance sheet purposes at the price paid for the asset at the time of its acquisition. The historical cost accounting is the situation in which accountants record revenue, expenditure and asset acquisition and disposal at historical cost: that is, the actual amounts of money, or money's worth, received or paid to complete the transaction...
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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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General issues of this essay:
Advantages and disadvantages of historical cost accounting, alternatives to historical cost accounting Asset Classes Asset Validation Asset Valuation Paper Asset Valuation Paper accountin for asset Capital asset pricing Historical Cost The Cost of Gasoline versus the Cost of Alternatives Cost Of Tuition Vs. Cost Of Ignorance Asset Forfeiture Asset Valuation Depreciation And Sale Of Asset Is Overfunding an Asset? Sale of asset
 

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