What type of a theory is historical cost? How has it been derived? Do you see...

What type of a theory is historical cost? How has it been derived? Do you see any special benefits of historical cost accounting during this COVID 19 pandemic?

Expert Solution

The theory of historical cost is a kind of pragmatic theory that is derived from the behaviour commonly used by many accountants. Hence this theory is sort.pf an inductuve approach that is derived from practice of the mass number of accountants. There is no scope for placing logical arguments for accountants.

In the present condition caused due to the lockdown to mitigate the impact of the covid has affected most businesses adversely. Market Valuation of essential products have gone up due to the heavy demand resulting in unnatural inflation. Market value for other non-essential goods especially many assets have fallen due to uneven demand. Lockdown has also made some assets obsolete. The market value has become so unambiguous and uncertain to determine for accountants, as no proper information that can vouch the market price is available. Thus in this situation accountants find it convenient and easier to present such assets in historical cost as it is very simple and easier.

ekkarill92 answered 1 year ago

Historical Cost Historical cost has been the most commonly used measurement attribute for assets. Find the...

Historical Cost Historical cost has been the most commonly used measurement attribute for assets. Find the places in the FASB ASC that cite historical cost. Looking for FASB ASC section number.

Howard Gardner's Theory Do you believe the the critics or do you see these as truce...

Howard Gardner's Theory Do you believe the the critics or do you see these as truce forms of intelligence? Describe a person who manifest Interpersonal intelligence?

Explain Malthusian theory. What do you see as its strengths? What are its limitations? Explain the...

Explain Malthusian theory. What do you see as its strengths? What are its limitations? Explain the demographic transition theory. How does this approach link population dynamics to economic development? Note : please answer in a short paragraph.

What is derived demand? Can theory around derived demand apply to other scenarios or events that...

What is derived demand? Can theory around derived demand apply to other scenarios or events that we may experience or be exposed to? Expand upon this discussion with your original thoughts, ideas and perspectives.

what do you see as the economic impact of the COVID-19 relief checks? how do you...

what do you see as the economic impact of the COVID-19 relief checks? how do you figure to the idea of transfer payments? (a 200 word response is ideal)

1) What you have been learning about The cost classification, Labor cost, ABC Costing. How do...

1) What you have been learning about The cost classification, Labor cost, ABC Costing. How do you think this knowledge could help you to be an effective hospitality manager in the future? (in 200 words minimum). 2) Method of apportioning costs to the cost centers of: - Employee’s holiday pay - Rooms division manager’s salary - Electrical power costs - Cost of servicing the hotel’s service lifts or elevators - Fee paid to a professional consultant for advice on fire regulation...

What aspects of Maslow or Roger's theory do you see applied most in your life? (500-750)

What aspects of Rollo May's theory do you see apply most often in your life? (Cite...

What aspects of Rollo May's theory do you see apply most often in your life? (Cite at least five examples in your own life to support your answer) Justify your answer with theory. (500 to 1000 words)

Exploring the EU. What do you see there that demonstrates economic integration and how it is...

Exploring the EU. What do you see there that demonstrates economic integration and how it is achieved? What is the historical significance of Brexit?

What is meant by the term "arm’s length," and how do you see it as important...

What is meant by the term "arm’s length," and how do you see it as important in tax planning? In what ways can a stock redemption be classified? In a stock redemption, would corporate and noncorporate shareholders have the same preference for tax treatment? Explain your response.

Question