Explain how the cost principle applies to recording the cost of property, plant, and equipment. - The
Question:
Explain how the cost principle applies to recording the cost of property, plant, and equipment.
- The cost of an asset is any expenditure necessary to acquire the asset and to prepare the asset for use.
- This amount is generally the cash paid.
- If noncash consideration is involved, cost is the fair value of the asset received or the fair value of the asset given up or consideration issued, whichever is more clearly determinable.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Cornerstones Of Financial Accounting
ISBN: 9780176707125
2nd Canadian Edition
Authors: Jay Rich, Jefferson Jones, Maryanne Mowen, Don Hansen, Donald Jones, Ralph Tassone
Question Posted: