The Cost Principle Is Best Described as

As per Cost Principal in the books of Google the value of YouTube will be shown as 165 billion. As the distance increases the cost curve increases at a decreasing rate.

Prioritize By Weighing The Value Of Additional Information Against The Cost Of Not Deciding Some Decisions Are Best Made After Acquiring More Information Some

The cost principle is one of the basic underlying guidelines in accounting.

. The term depreciable cost or depreciable base as it is used in accounting refers to a. The matching of the book value of an asset with its market value. For example when a retailer purchases inventory from a vendor it records the purchase at the cash price that was actually paid.

In 2006 Google bought YouTube for 165 billion as one of the most significant tech acquisitions in history. Inside the PPF and points on the PPF. Offsetting the revenue of an accounting period with the estimated decline in market value of plant and equipment during the accounting period.

Offsetting the cash receipts of the period with the cash payments made during the period. Offsetting the revenue of an accounting period with the estimated decline in market value of plant and equipment during the accounting period. Investors can use this economic principle to determine the risk of investing in a company.

Minor terms of the contract are yet to be fulfilled. The cost is equal to the amount paid in the transaction. The cost principle states that costis recorded at the price actually paid for an item.

This best describes the economic principle of. The acquisition cost. The cost principle is an accounting concept that states goods and services should be recorded at their original or historical cost.

Companies can use this rate of return to decide whether to move forward with a project. Monica has 500 to spend and wants to buy either a new snowboard or a new laptop. This concept takes a conservative approach when recording items into the companys accounting ledger.

The tapering principle is best described As the distance increases the cost curve also increases. The cost principle states that cost is recorded at the price actually paid for an item. As the distance decreases the cost curve decreases As the distance decreases the cost curve increases at a decreasing rate.

B The value of a commodity or an asset to a firm or its investors is determined by its competitive market price. Allocating the cost of an asset to expense over the periods during which benefits are derived from the asset. The original cost can include everything that goes into the cost including shipping and delivery fees setup and training.

Question The cost principle is best described as. The principle prescribes that an accounting information system reports information that is understandable. Consider the production possibilities frontier PPF shown in the figure below to answer the following questions.

The amount of the asset that is recorded may not be increased for improvements in market value or inflation nor can it be updated to reflect any depreciation. The cost of a special device that is necessary if a special order is accepted II. The cost proposed annually for the plant service for the grounds at corporate headquarters III.

Which of the following best describes the valuation principle. A simpler cost of capital definition. The cost principle is an accounting principle that records assets at their respective cash amounts at the time the asset was purchased or acquired.

The principle prescribes that an accounting information system reports information that is useful. The principle prescribes that an accounting information system reports information that is cost effective to gather. All or most of contractual obligations are fulfilled.

The first cost principle accounting example is the Google acquisition of YouTube. A It is not possible to compare costs and benefits that occur at different points in time in different currencies or with different risks. Both the snowboard and the laptop cost around 500 so she can only buy one.

The cost of the asset less the related depreciation recorded to date. Principles of Microeconomics Chapter 2 Quiz. The equation Assets Liabilities Owners Equity.

The total amount to be charged debited to expense over an assets useful life. Cost of capital can best be described as the ability to cover both asset and liability expenditures while generating a profit. A major term of the contract is mostly fulfilled.

When in doubt understate assets and sales revenue and overstate liabilities and expenses Record an expense in the same time period that the corresponding revenue is recorded. Joint production cost incurred to be considered in a sell-at-split versus a process-further decision IV. It is also known as the historical cost principle.

Given current resources and technology the unattainable range is best described as. For example when a retailer purchases inventory from a vendor it records the purchase at the cash price that was actually paid. This concept is mainly used when recording short- and long-term assets and liabilities or equity investments.

The cost principle also known as the historical cost principle states that assets should be recorded at their original cost rather than their current market value. The historical cost principle also called the cost principle states that virtually all business assets must be recorded as the value on the date the asset was bought or assumed ownership. The estimated market value of the asset at the end of its useful life.

O Recording an asset on the balance sheet at an amount equal to what was paid for it. However years after the acquisition YouTube value. The matching of the book value of an asset with its market value.

The cost principle requires that assets be recorded at the cash amount or the equivalent at the time that an asset is acquired. Further the amount recorded will not be increased for inflation or improvements in market value. The cost is equal to the amount paid in the transaction.

48 The principle of substantial performance can best be described as which of the following.

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