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Historical Cost Principle
A fundamental accounting rule stating that assets must be logged and presented at the cost they were originally bought for.
Going Concern Principle
An accounting assumption that a company will continue operating and not go bankrupt or be liquidated in the foreseeable future.
Straight-Line Deprecation
A method of calculating the depreciation of an asset, dividing its cost by the number of years it is expected to be useful.
Book Value
The net value of a company's assets, found by deducting total liabilities and intangible assets from total assets.
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