Question

Which GAAP principle tells us how to record assets?

Which GAAP principle tells us how to record assets?
Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

The Cost Principle

The value recorded in the accounts for an asset is not changed until later if the market value of the asset changes. It would take an entirely new transaction based on new objective evidence to change the original value of an asset.

There are times when the above type of objective evidence is not available. For example, a building could be received as a gift. In such a case, the transaction would be recorded at fair market value which must be determined by some independent means.

Thanks

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Heisenberg's uncertainty principle tells us that _____. Heisenberg's uncertainty principle tells us that _____. the more...
Heisenberg's uncertainty principle tells us that _____. Heisenberg's uncertainty principle tells us that _____. the more accurately we know the position of a particle, the less accurately we can know the velocity of that particle the de Broglie wavelength of an electron is related to its velocity an electron is actually something intermediate between a particle and a wave complementary properties are those properties that can be measured simultaneously
The principle of diversification tells us that Select one: a. concentrating an investment in two or...
The principle of diversification tells us that Select one: a. concentrating an investment in two or three large stocks will eliminate all of the unsystematic risk. b. concentrating an investment in three companies all within the same industry will greatly reduce the systematic risk c. spreading an investment across many diverse assets will eliminate some of the total risk
Under current US GAAP, assets that have been donated to a company are recorded at fair...
Under current US GAAP, assets that have been donated to a company are recorded at fair value. In at least three paragraphs, support one of the positions presented below. You should use references to reference material, as necessary. Argue that donated assets should not be reported in a company's balance sheet or argue in favor of the current GAAP treatment for donated assets.
What are the main reasons why US GAAP and IFRS differ? A) US GAAP was developed...
What are the main reasons why US GAAP and IFRS differ? A) US GAAP was developed to primarily satisfy the need of tax authorities and government planners. C) US GAAP was developed to primarily satisfy the need of investors and creditors. D )None of the above
The elimination principle discussed in this chapter tells us what we can expect in the long...
The elimination principle discussed in this chapter tells us what we can expect in the long run from perfectly competitive markets: zero (normal) profits across the industries. If this were the case, and this fate was unavoidable, going into business would seem to be a fairly dismal choice, given that the end result of normal profits is known right out of the gate. Despite this, we constantly see entrepreneurs working hard to earn profits. Is this a waste of time,...
How is “functional currency” defined under US GAAP and IFRS? What are the journal entries for...
How is “functional currency” defined under US GAAP and IFRS? What are the journal entries for recognition of realized and unrealized foreign currency exchange gain or loss under US GAAP and IFRS?
What is GAAP? For what and by whom were they created? Pick one principle and explain...
What is GAAP? For what and by whom were they created? Pick one principle and explain its meaning and how it might be applied in accounting.
The quantity theory of money ________. tells us how much money is held for a given...
The quantity theory of money ________. tells us how much money is held for a given amount of nominal spending is formulated in terms of aggregate output because the nominal value of transactions is difficult to measure implicitly tells us the quantity of money that people want to hold all of the above none of the above
Which of the following statements is correct? a) The balance sheet for a given year is...
Which of the following statements is correct? a) The balance sheet for a given year is designed to give us an idea of what happened to the firm during the course of the year. b) The balance sheet for a given year tells us how much money the company earned during that year. c) The difference between the total assets reported on the balance sheet and the liabilities reported on this statement tells us the current market value of the...
Which of the following used to determine when and how much expense to record? None of...
Which of the following used to determine when and how much expense to record? None of these Full disclosure principle Expense recognition principle Matching principle
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT