Search results
Results from the WOW.Com Content Network
In accounting, the convention of conservatism, also known as the doctrine of prudence, is a policy of anticipating possible future losses but not future gains. It states that when choosing between two solutions, the one that will be least likely to overstate assets and income should be selected.
In accounting, lower of cost or market (LCM or LOCOM) is a conservative approach to valuing and reporting inventory. Normally, ending inventory is stated at historical cost. However, there are times when the original cost of the ending inventory is greater than the net realizable value, and thus the inventory has lost value.
Moreover, the Conservatism is also a less dominated constraint, which means firms also need to consider more about bad news than good news when reporting financial statements. [18] In particular, firms need to choose the method that "least likely overstates assets and income or understates liabilities and losses" [3] when encountering ...
Capital accumulation is the dynamic that motivates the pursuit of profit, involving the investment of money or any financial asset with the goal of increasing the initial monetary value of said asset as a financial return whether in the form of profit, rent, interest, royalties or capital gains.
The primary difference between socialism and capitalism is the role of government. In socialist economies, a central body — the government — owns and controls the society’s assets, firms and ...
In this op-ed, Alexander Salter explains the important connection between political freedom and economic freedom
This is argued to herald the end of capitalism's functioning as both a profit generating economic system for capitalists, and as a social system, among other things because the capitalist system does not contain a means for distributing incomes other than that based on labour-effort, and full automation would negate the concept of exploitation. [3]
Capitalism, the intellectuals argued, may address man’s material needs, but fails to advance higher order needs – community, environmental protection, equality and justice.