he cost principle requires that companies record tangible capital assets at: a.fair value. b.book value. c.historical cost. d.market value.
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2. The cost principle requires that companies record tangible capital assets at:
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- Working capital is an indication of the firms ________. A. asset utilization B. amount of noncurrent liabilities C. liquidity D. amount of noncurrent assetsIf a company capitalizes costs that should be expensed, how is its income statement for the current period impacted? A. Assets understated B. Net Income understated C. Expenses understated D. Revenues understatedThe cost of equity is _______. A. the interest associated with debt B. the rate of return required by investors to incentivize them to invest in a company C. the weighted average cost of capital D. equal to the amount of asset turnover
- Contributions to capital from company's owners are a. Internal financial resources b. Debt resources c. External financial resources d. Deferred profitWhich is NOT a consideration for Cost of Capital?A. Invetsor requirementsB. Size of the CompanyC. All of these are considerationsD. Nature of businessA resource owned by the business with purpose of using it for generating future profit, is known as Oa Capital b. Asset Oc. Liability Od. Surplus
- The monetary value of the net assets is reported at its historical cost on the balance sheet? a. physical capital b. excess capital c. net capital d. financial capitali) calculates the capital expenditure and revenue expenditure that adliana incurred ii)explain why firms must correctly classify expenditures incurred as either capital expenditure or revenue expendituresAssets = Liability+ Capital where 'assets' are resources of the business; 'liabilities' are external claims against these resources; ' capital' is an internal or residual claim against these resources. Discuss the accounting equation considering the statement provided.
- Networking capital refers to the A) firms investment in total assets B) firms' investment in current assets C) difference between the firm's current assets and its current liabilities D) Difference between the firms total assets and its total liabilities_______ 1. Financial assets at amortized cost shall be measured at fair value through profit or loss. _______ 2. Transaction costs include fees and commission paid to agent, levies by regulating authorities, transfer taxes and duties. _______ 3. As a rule, transaction costs that are directly attributable to the acquisition of a financial asset should be capitalized as cost of the financial asset. _______ 4. Financial assets held for trading are reported at cost. _______ 5. The stockholder theoretically realized income from dividend at the data of record. _______ 6. As investee is an entity over which the investor has significant influence. _______ 7. Trading bond investment are reported at face amount. _______ 8. A gain or loss on sale of trading bond investment is the difference between sale price and fair value. _______ 9. The interest rate written on the face of the bond is known as nominal rate. _______ 10. Major spare part and standby equipment which are expected to be used…The valuation method primarily used in the balance sheets of business entities is a. current exit value b. historical cost c. present value d. net realizable value