historic cost approach, the depreciation charges will be based totally on the original value of the assets, which might also be decrease than the modern-day market value. As a result, the pronounced earnings for the duration will be greater than if the market cost strategy had been chosen. Similarly, the announcement of cash flows will be affected, as the money outflows for the buy of the assets will be decrease below the historic price approach.
historic cost approach, the depreciation charges will be based totally on the original value of the assets, which might also be decrease than the modern-day market value. As a result, the pronounced earnings for the duration will be greater than if the market cost strategy had been chosen. Similarly, the announcement of cash flows will be affected, as the money outflows for the buy of the assets will be decrease below the historic price approach.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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