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

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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 as per 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.

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 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 as per 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.

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 as per 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.

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 as per 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.

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 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 as per 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.

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 as per 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.

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 as per 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.

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

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Ch. 9 - Prob. 1Q Ch. 9 - Prob. 2Q Ch. 9 - Prob. 3Q Ch. 9 - Prob. 10Q Ch. 9 - Prob. 4Q Ch. 9 - Prob. 5Q Ch. 9 - Prob. 6Q Ch. 9 - Prob. 7Q Ch. 9 - Prob. 8Q 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