BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -Understanding Historical Costs Not all assets are held at historical cost. For example, marketable securities are recorded at their fair market value on the balance sheet, and impaired intangible assets are written down from historical cost to their fair market value.

Detailed explanation-2: -Historical cost is what your company paid for an asset when you originally bought it. That cost is verifiable by a receipt or other official record of the initial transaction. It is a static snapshot of asset value at the time of purchase and provides no measure of how value may have changed over time.

Detailed explanation-3: -Assets whose value is recorded in the Current Assets account are considered current assets. Current assets include cash, cash equivalents, accounts receivable, stock inventory, marketable securities, pre-paid liabilities, and other liquid assets. Current Assets may also be called Current Accounts.

Detailed explanation-4: -Historical cost, considers the original cost of the item, at the time and date of its acquisition. On the other hand, current value accounting involves, periodically updating the value of the items and to be recorded at that value, on which they can be currently sold in the market.