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Principles of Accounting

This principle has for its basis merely ordinary common sense . If the purchase
price is greater than the total net worth , as exhibited in the balance sheet of the
purchased company , it is assumed that the assets of that company have been ...

Principles of Accounting

This principle of " keeping separate ” the various classes of income and expense
is of fundamental importance . One engaged in two different lines of busiess will
desire to know the results of each of those lines independently . If he gets only a ...