Historical Cost of Liabilities
State the Historical Cost of Liabilities?
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Historical Cost of Liabilities:
Any loan or other liability that has been by us will be computed on its historical cost. For illustration: A gave Loan of $ 10,000 to B 5 years. Still B did not re-back his taken loan to A. In 5 years, prices have risen approximately double due to inflation however still loan cost will be $ 10,000 in both of the parties’ book.
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The following information for the month of December 20x6, with respect to cash activities, was gathered by Tressa Ltd.’s bookkeeper. Cash balance per books, December 1 $ 3,700 Q : Real gross profit ratio and standard Is real gross profit ratio is bigger than standard gross profit ratio?
Is real gross profit ratio is bigger than standard gross profit ratio?
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