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Cost Principle - Accounting Principle
According to this principle all the non-monetary assets of the business are display in the books of accounts at the historical cost that is the price paid to obtain these assets. Non-monetary assets are rights or claims, current or fixed that cannot be converted in fixed number of rupees at a point of time. The example of current non-monetary assets are inventories, prepared expenses etc.,and of fixed non-monetary assets are building, plant & machinery, furniture, etc.
It is a well known fact that the value of a financial claim reflects the present value of the cash flows produced by the financial claim. While valuing an MBS an
Q. In planning a restaurant, it is estimated that a revenue of $6 per seat will be realized if the number of seats is at most 50. On the other hand, the revenue on each seat will d
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