Valuation of Assets Under Generally Accepted Accounting Principles

question 26

Essay

Valuation of assets under generally accepted accounting principles
Under generally accepted accounting principles,the assets owned by a business are reported in the balance sheet at their historical cost.Identify and briefly explain two accounting principles other than the cost principle that support the valuation of assets at cost in the balance sheet.

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Definitions:

Signpost

An explicit statement of the place that a speaker or writer has reached: “Now we come to the third point.”

Wind Energy

The process of converting wind flow into mechanical or electrical energy, which can be used for power.

Audience

The group of people targeted by a message, performance, or product.

Road Safety

Measures and strategies implemented to prevent road accidents and protect road users, including drivers, pedestrians, and cyclists, aiming to reduce injury and fatalities.