Plant Assets: Plant assets refer to the fixed assets, having a useful life of more than a year that is acquired by a company to be used in its business activities, for generating revenue. To explain: Historical cost principle applies to plant assets

Question

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Answer 1

Question

Chapter 9, Problem 1Q

To determine

Plant Assets: Plant assets refer to the fixed assets, having a useful life of more than a year that is acquired by a company to be used in its business activities, for generating revenue.

To explain: Historical cost principle applies to plant assets

Expert Solution & Answer

Explanation of Solution

According to the historical cost principle, all the plant assets should be recorded at their historical or original cost in the books of accounts. The historical cost refers to the amount paid for purchasing the fixed assets. It includes the cost price of the asset plus any taxes, purchase commission or brokerage, or any amount paid to make the asset ready for operation.

Thus, when a plant asset is recorded in the books of accounts, it should be recorded at historical cost that is, at its total cost which includes all the expenditures spent to acquire the asset and make it ready to serve the purpose.

Conclusion

Thus, the plant assets applies to historical cost principle that requires all the plant assets to be recorded at its original cost.

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Students have asked these similar questions

Depreciation is the allocation of the cost of a plant asset over its useful life in a rational and systematic manner. The asset being depreciated remains at historical cost and the accumulated depreciation account serves as a contra account to lower the asset balance on the books. Question: Explain why this lowered value is, or is not, the market value of the asset in any given accounting period. Support your answer with examples explaining your choice.

Under IFRS, the costs of relocating property, plant, and equipment can be capitalized as assets and depreciated over the period of expected benefit. True False

Describe to Stan what it means to capitalize an expenditure. What is the general rulefor determining which costs are capitalized when property, plant, and equipment or anintangible asset is acquired?

Answer 2

Question

Chapter 9, Problem 1Q

To determine

Plant Assets: Plant assets refer to the fixed assets, having a useful life of more than a year that is acquired by a company to be used in its business activities, for generating revenue.

To explain: Historical cost principle applies to plant assets

Expert Solution & Answer

Explanation of Solution

According to the historical cost principle, all the plant assets should be recorded at their historical or original cost in the books of accounts. The historical cost refers to the amount paid for purchasing the fixed assets. It includes the cost price of the asset plus any taxes, purchase commission or brokerage, or any amount paid to make the asset ready for operation.

Thus, when a plant asset is recorded in the books of accounts, it should be recorded at historical cost that is, at its total cost which includes all the expenditures spent to acquire the asset and make it ready to serve the purpose.

Conclusion

Thus, the plant assets applies to historical cost principle that requires all the plant assets to be recorded at its original cost.

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Answer 3

Question

Chapter 9, Problem 1Q

To determine

Plant Assets: Plant assets refer to the fixed assets, having a useful life of more than a year that is acquired by a company to be used in its business activities, for generating revenue.

To explain: Historical cost principle applies to plant assets

Expert Solution & Answer

Explanation of Solution

According to the historical cost principle, all the plant assets should be recorded at their historical or original cost in the books of accounts. The historical cost refers to the amount paid for purchasing the fixed assets. It includes the cost price of the asset plus any taxes, purchase commission or brokerage, or any amount paid to make the asset ready for operation.

Thus, when a plant asset is recorded in the books of accounts, it should be recorded at historical cost that is, at its total cost which includes all the expenditures spent to acquire the asset and make it ready to serve the purpose.

Conclusion

Thus, the plant assets applies to historical cost principle that requires all the plant assets to be recorded at its original cost.

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Answer 4

Question

Chapter 9, Problem 1Q

To determine

Plant Assets: Plant assets refer to the fixed assets, having a useful life of more than a year that is acquired by a company to be used in its business activities, for generating revenue.

To explain: Historical cost principle applies to plant assets

Expert Solution & Answer

Explanation of Solution

According to the historical cost principle, all the plant assets should be recorded at their historical or original cost in the books of accounts. The historical cost refers to the amount paid for purchasing the fixed assets. It includes the cost price of the asset plus any taxes, purchase commission or brokerage, or any amount paid to make the asset ready for operation.

Thus, when a plant asset is recorded in the books of accounts, it should be recorded at historical cost that is, at its total cost which includes all the expenditures spent to acquire the asset and make it ready to serve the purpose.

Conclusion

Thus, the plant assets applies to historical cost principle that requires all the plant assets to be recorded at its original cost.

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Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 9, Problem 1Q

To determine

Plant Assets: Plant assets refer to the fixed assets, having a useful life of more than a year that is acquired by a company to be used in its business activities, for generating revenue.

To explain: Historical cost principle applies to plant assets

Expert Solution & Answer

Explanation of Solution

According to the historical cost principle, all the plant assets should be recorded at their historical or original cost in the books of accounts. The historical cost refers to the amount paid for purchasing the fixed assets. It includes the cost price of the asset plus any taxes, purchase commission or brokerage, or any amount paid to make the asset ready for operation.

Thus, when a plant asset is recorded in the books of accounts, it should be recorded at historical cost that is, at its total cost which includes all the expenditures spent to acquire the asset and make it ready to serve the purpose.

Conclusion

Thus, the plant assets applies to historical cost principle that requires all the plant assets to be recorded at its original cost.

Answer 6

Chapter 9, Problem 1Q

To determine

Plant Assets: Plant assets refer to the fixed assets, having a useful life of more than a year that is acquired by a company to be used in its business activities, for generating revenue.

To explain: Historical cost principle applies to plant assets

Expert Solution & Answer

Explanation of Solution

According to the historical cost principle, all the plant assets should be recorded at their historical or original cost in the books of accounts. The historical cost refers to the amount paid for purchasing the fixed assets. It includes the cost price of the asset plus any taxes, purchase commission or brokerage, or any amount paid to make the asset ready for operation.

Thus, when a plant asset is recorded in the books of accounts, it should be recorded at historical cost that is, at its total cost which includes all the expenditures spent to acquire the asset and make it ready to serve the purpose.

Conclusion

Thus, the plant assets applies to historical cost principle that requires all the plant assets to be recorded at its original cost.

Answer 7

Chapter 9, Problem 1Q

To determine

Plant Assets: Plant assets refer to the fixed assets, having a useful life of more than a year that is acquired by a company to be used in its business activities, for generating revenue.

To explain: Historical cost principle applies to plant assets

Answer 8

Expert Solution & Answer

Explanation of Solution

According to the historical cost principle, all the plant assets should be recorded at their historical or original cost in the books of accounts. The historical cost refers to the amount paid for purchasing the fixed assets. It includes the cost price of the asset plus any taxes, purchase commission or brokerage, or any amount paid to make the asset ready for operation.

Thus, when a plant asset is recorded in the books of accounts, it should be recorded at historical cost that is, at its total cost which includes all the expenditures spent to acquire the asset and make it ready to serve the purpose.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Conclusion

Thus, the plant assets applies to historical cost principle that requires all the plant assets to be recorded at its original cost.

Answer 12

Ch. 9 - Prob. 1Q Ch. 9 - Prob. 2Q Ch. 9 - Prob. 3Q Ch. 9 - Prob. 4Q Ch. 9 - Prob. 5Q Ch. 9 - Prob. 6Q Ch. 9 - Prob. 7Q Ch. 9 - Prob. 8Q Ch. 9 - Prob. 9Q Ch. 9 - In the fourth year of an assets 5-year useful...

Plant Assets: Plant assets refer to the fixed assets, having a useful life of more than a year that is acquired by a company to be used in its business activities, for generating revenue. To explain: Historical cost principle applies to plant assets

Plant Assets: Plant assets refer to the fixed assets, having a useful life of more than a year that is acquired by a company to be used in its business activities, for generating revenue. To explain: Historical cost principle applies to plant assets

Explanation of Solution

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Chapter 9 Solutions

Plant Assets: Plant assets refer to the fixed assets, having a useful life of more than a year that is acquired by a company to be used in its business activities, for generating revenue.

To explain: Historical cost principle applies to plant assets