--%>
Assignment Help - homework help

Advantage of Historical Cost in Decision Making

What is the advantage of Historical Cost in Decision Making?

E

Expert

Verified

Advantage of Historical Cost in Decision Making:

As investor, whenever you have to evaluate the balance sheet for taking investment decision, you have to ensure every historical cost and try to transform it in fair value. With this, you can find actual lose of any asset whenever we compare historical cost with the current value. You can as well recreate the balance sheet on the basis changes in price level when you get balance sheet on the basis of historical cost. On another side, when you are employing historical cost technique for making balance sheet, you require not to record the gain before selling the asset since you have exposed all assets in the book on historical cost basis.

   Related Questions in Financial Accounting

  • Q : Sale return or return inward Describe

    Describe Sale return or return inward in brief.

    		•
  • Q : Human race in our modern world Here are

    Here are two papers addressed to the in-class essay from the previous class. Study them in the context of the exact wording of the assignment and take some notes that will enable you to refer to specific features of the two papers when talking about their relative qua

    		•
  • Q : Direct loans-loan guarantees and credit

    Do you think that government of the country must assist the private business in conduction of the international trade through the direct loans, loan guarantees, and/or credit insurance?

    		•
  • Q : What is Purchase What is Purchase .

    What is Purchase. Briefly state the definition of it?

    		•
  • Q : Type of bond instrument You are an

    You are an investment banker who is advising a Euro bank about the new international bond offer it is considering.  Proceeds are to be used to fund Eurodollar loans to the bank clients.  Specify the type of bond instrument you would recommend that bank shoul

    		•
  • Q : Effect of shipping costs Assume that

    Assume that pound is being pegged to the gold at 6 pounds per ounce; on the other hand the franc is being pegged to the gold at 12 francs per ounce. Which, of course, states that equilibrium exchange rate must be the two francs per pound? If existing market exchange r

    		•
  • Q : Business term as part of our Accounting

    "Business term is the part of our Accounting". Illustrate this statement.

    		•
  • Q : Matlab Applications in Image and Video

    Image and video processing is most difficult topic in electrical and electronics field. This topic becomes trickier if you are taking use of Matlab in this. Student faces a lot of problem in image and video processing theories. If you are messed up with same difficulties

    		•
  • Q : Calculation of NPV Calculation of NPV:

    Calculation of NPV: Calculation of NPV is done through the same method of discounting as described above. However in this case the rate is predefined for  discounting. It is the cost of overall long term resources, whether debt or equity. This co

    		•
  • Q : Factors influencing real estate market

    What are the factors which influences real estate market?

    		•