A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
Historical Cost Accounting
Historical cost accounting values assets at the price paid for them at the time they were acquired without making an adjustment for inflation, in contrast to current cost accounting. The main advantage is simplicity and certainty, the main disadvantage is that book values may be calculated using costs that are out of date.
See also: Accruals Accounting