Archive | Assets

Combination of Values Approach

In this article we will discuss about the combination of values approach. The combination of values approach has been suggested as a way of avoiding some of the disadvantages of the different current value valuation methods. The Canadian Accounting Research Committee (CARC) favours a combined use of current entry and current exit prices. More specifically, the following values are advocated [...]

By |2016-06-18T07:01:38+00:00June 18, 2016|Assets|Comments Off on Combination of Values Approach

Advantages of Historical Cost

In this article we will discuss about the advantages of historical cost. Firstly, historical cost principle automatically requires the recording of all actual transactions in the past. The market value of finished goods can be ascertained without knowing how the goods were actually produced. But there is no way to determine the historical cost of the goods without a record [...]

By |2016-06-18T07:01:38+00:00June 18, 2016|Assets|Comments Off on Advantages of Historical Cost

Current Assets: Meaning and Classification

In this article we will discuss about the meaning and classification of current assets. Meaning of Current Assets: Current assets are defined as "cash and other assets that are expected to be converted into cash or consumed in the production of goods or rendering of services in the normal course of business". Items are included in current assets on the [...]

By |2016-06-18T07:01:38+00:00June 18, 2016|Current Assets|Comments Off on Current Assets: Meaning and Classification
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