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Force account historical cost summary Form: What You Should Know

Equipment Total 1,380.43.00 #2 Maintenance β€” Equipment Total 1,270.48.00 #3 Labor and other equipment β€” Station/Station Supplies 1,094.00.00 #4 Labor & other equipment β€” Other Equipment 873.44.00 #5 Materials 1,180.35.00 #6 Maintenance β€” Supplies 957.40.00 #7 Other Total 1,749.00.31 #8 Miscellaneous β€” Station Supplies 0.00 #9 Misc. β€” Depreciation 0.00 #10 Miscellaneous β€” Equipment (includes labor) 0.00 #11 Miscellaneous β€” Other 0.00 #12 Total 9,096.30.00 #13 Cost of Ownership 2,867.24.01 #14 Total 9,159.29.01 #15 Cost of Goods Sold 2,957.00.40 #16 Total 8,898.90.42 #17 Cost of Taxes 2,846.36.10 #18 Total 8,621.06.02 #19 Cost of Interest 4,068.28.20 #20 Total 9,157.09.60 #21 Other 1,891.05.35 #22 Total 8,809.03.

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The historical cost principle is an accounting principle that's very elated to the qualitative characteristic of reliability a definition is that all transactions are recorded their original cost or their purchase price and must be shown in the firm's accounting reports at this historical price at all times this means that asset assets aren't revalued to their current market value but are maintained at their original costs a question we need to ask is is this an appropriate principle for all assets for example inventory or stock some stock decreases in value over time for instance if I have summer swimwear and it's now winter I'm probably gonna have to lower the price of that so historical cost might not be appropriate a debtor will the debtors a balance that they owe me that's something that's probably going to remain constant so I'll probably keep that at its historical cost premises generally in Australia we're fortunate the property prices go up over time so it doesn't really make sense to not revalue property and the historical cost principle may not apply the value of shares they change every day and vehicles again may go down over time they depreciate so we need to consider is historical cost the most appropriate principle to apply and ah let's look at art as an example so let's take the Mona Lisa painted by DaVinci many years ago well by the king of France for 4000 you kids currency that doesn't exist anymore and basically in the early eighteen hundreds its went to the Louvre and it's remained there we just want to do an equivalency we've got 4,000 new cos is about $190,000 approximately so using the historical cost principle the Louvre should record the Mona Lisa as an asset for $190,000 that's...

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