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Exit Price Accounting - Coggle Diagram
Exit Price Accounting
Introduction
A system of accounting that uses market selling prices to measure the firm's financial position and financial performance.
The First Era
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Used original or historical cost to calculate the cost as the period to carry out the venture is short.
The Second Era
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The accountant observed that a conservative posture is beneficial for both parties, the creditor and the owner.
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Solutions
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In competitive markets, accountants need to report all profits and losses and values as calculated.
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Occasional non-marketable, non-reproducible assets are valued at historical costs.
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