How JustAnswer Works:

  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.

Ask eth1819 Your Own Question

eth1819
eth1819, Tutor
Category: Homework
Satisfied Customers: 133
Experience:  B.A., Microbiology
14413586
Type Your Homework Question Here...
eth1819 is online now
A new question is answered every 9 seconds

The cost principle is the basis for preparing financial statements

Resolved Question:

The cost principle is the basis for preparing financial statements because it is __________.
Submitted: 7 years ago.
Category: Homework
Expert:  eth1819 replied 7 years ago.
HiCustomer

The cost principle is the basis for preparing financial statements because it is always reliable, verifiable and objective. For example, if you bought a diamond two years ago for $50,000, your cash sales receipt and all other relevant documents would show the original cost of $50,000, which demonstrates reliability, verifiability, and objectivity (all of which are important guidelines for financial statements). However, if you do not apply the cost principle and choose to record the transaction at the current value, you would have different estimates for the value, and therefore, it is not reliable, verifiable, and objective.

I hope that helps.

Analeigh
Customer: replied 7 years ago.
A. an international accounting standard
B. the most accurate measure of purchasing power
C. a conservative value
D. relevant and objectively measured, and verifiable
Expert:  eth1819 replied 7 years ago.
THIS ANSWER IS LOCKED!

You need to spend $3 to view this post. Add Funds to your account and buy credits.
eth1819 and other Homework Specialists are ready to help you