| 单词 | historical cost accounting |
| 释义 | historical cost accounting A system of accounting based primarily on the original costs incurred in a transaction. It is relaxed to some extent by such practices as the valuation of stock at the lower of cost and net realizable value and, in the UK, revaluation of capital assets. The advantages of historical cost accounting are that it is relatively objective, easy to apply, difficult to falsely manipulate, and suitable for audit verification. In times of high inflation, however, the results of historical cost accounting can be misleading as profit can be overstated, assets understated in terms of current values, and capital maintenance is only concerned with the nominal amount of the capital invested rather than its purchasing power. Because of these defects it is argued that historical cost accounting is of little use for decision making, but attempts to replace it with such other methods as current cost accounting have failed. Company legislation sets out the rules for the application of historical cost accounting to financial statements. Companies may also choose to use alternative accounting rules based on current cost accounting. |
| 随便看 |
|
英汉经管词典收录了5297条经济管理类英汉双解词条，基本涵盖了经济学、管理学、金融学、会计学、证券期货、商务活动等领域的常用英语单词及短语词组的翻译及用法，是学习及工作的有利工具。