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Intermediate Accounting 2 final Review
Terms in this set (3)
PP and E
Are assets of a durable nature.
- other terms commonly used are;
Plant asset and fixed assets.
* used in operation not for resale
* long term in nature and usually depreciated
* posses physical substance.
Measures the cash or cash equivalent price of obtaining the asset and bringing it to the location and condition necessary for its intended use.
Main reason for historical cost valuation
1. Historical cost is reliable
2. Companies should not anticipate gains and losses but should recognize gains and losses only when the asses is sold.
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