Historical Cost Accounting Convention

Definition:

An accounting technique that values an asset for balance sheet purposes at the price paid for the asset at the time of its acquisition.

Investing Essentials


Copyright © 2011 Campbell R. Harvey, Professor of Finance, Fuqua School of Business at Duke University

Term of the Day

Heavy

An equities market now dominated by sellers, or oversupply, resulting in falling prices. See: Overbought, resistance level, tired.

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