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Difference between price and cost

Or maybe you’ve had to take a good look at the cost of living in an expensive city. When we start a new hobby or take a trip, we usually have to evaluate its price as well. As seen in the diagram, at OQ level...

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Monetary Unit Assumption

Thus, a company cannot record such non-quantifiable items as employee skill levels, the quality of customer service, or the ingenuity of the engineering staff. Or, a business cannot record the monetary value of a valuable speech given to employees about how to engage in innovative...

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Allowance for Uncollectible Accounts Explained

For the sake of this example, assume that there was no interest charged to the buyer because of the short-term nature or life of the loan. When the account defaults for nonpayment on December 1, the company would record the following journal entry to recognize...

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