Tuesday, August 27, 2013

What does the cost principle mean for a company’s income statement?


 
 
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What does the cost principle mean for a company's income statement?
If a company has buildings, equipment and inventory, the cost principle will mean that the amount of depreciation expense and the cost of goods sold expense will be based on the costs when the assets were acquired. If these assets have increased in value, the depreciation and cost of goods sold reported on the income […]



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