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Historical Cost
Essay specific features
Written by:
Stephanie H
Date added:
January 26, 2016
Level:
University
Grade:
A
No of pages / words:
5 / 1241
Was viewed:
9154 times
Rating of current essay:
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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