Fixed assets are reported in the Balance Sheet at historical cost basis. This is done in order to comply with the accounting principle of:
A. Going concern principle
B. Conservatism principle
C. Constant money value principle
D. Realisation principle
Answer: Option A
This Question Belongs to Commerce >> Accounting
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Accounting provides information on
A. Cost and income for managers
B. Company's tax liability for a particular year
C. Financial conditions of an institutions
D. All of the above
The long term assets that have no physical existence but are rights that have value is known as
A. Current assets
B. Fixed assets
C. Intangible assets
D. Investments
The assets that can be converted into cash within a short period (i.e. 1 year or less) are known as
A. Current assets
B. Fixed assets
C. Intangible assets
D. Investments
Patents, Copyrights and Trademarks are
A. Current assets
B. Fixed assets
C. Intangible assets
D. Investments
There is a Cost Principle or Historical cost concept. Based on this principle the fixed asset is recorded on historical cost.