Asked by Sydnee Wilcher on Jun 07, 2024
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In accordance with the historical cost principle brokerage fees should be added to the cost of an investment.
Historical Cost Principle
An accounting principle that states assets should be recorded and reported at their original purchase cost.
Brokerage Fees
Charges levied by brokers for facilitating transactions between buyers and sellers in the financial markets.
Investment
The allocation of resources, typically money, into assets or projects with the expectation of generating income or profit.
- Become familiar with the consequences of implementing the historical cost principle on the notation of investment activities.
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Learning Objectives
- Become familiar with the consequences of implementing the historical cost principle on the notation of investment activities.
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