a . Depreciation is an application of what accounting principle? b . What distinguishes a plant asset
Question:
a. Depreciation is an application of what accounting principle?
b. What distinguishes a plant asset from a current asset?
Step by Step Answer:
a Depreciation is an application of the accounting principle of matching expenses with revenues T...View the full answer
Related Video
Depreciation of non-current assets is the process of allocating the cost of the asset over its useful life. The cost of the asset includes the purchase price, any additional costs incurred to bring the asset to its current condition and location, and any other costs that are directly attributable to the asset. The useful life of the asset is the period over which the asset is expected to be used by the company. To calculate the depreciation, companies use different methods such as straight-line, declining-balance, sum-of-the-years\'-digits, units-of-production, and group depreciation. The chosen method will depend on the type of asset, the company\'s accounting policies, and the accounting standards that are applicable. The straight-line method allocates an equal amount of the asset\'s cost over its useful life, while the declining-balance method calculates depreciation at a fixed rate, typically double the straight-line rate, but the amount of depreciation decreases over time. The sum-of-the-years\'-digits method is similar to the declining-balance method, but the rate of depreciation is calculated using a fraction that is based on the useful life of the asset. It\'s important to note that the depreciation expense will be recorded on the company\'s income statement and the accumulated depreciation will be recorded on the company\'s balance sheet. This will decrease the value of the asset on the balance sheet over time.
Students also viewed these Business questions
-
What distinguishes a change in an accounting principle from a change in an estimate? How should a company account for each?
-
Given that the LCM rule is an application of the conservatism convention in the current accounting period, is the effect of this application also conservative in the next period?
-
Can we say that this is an application of integration by parts?
-
Find the extreme values of (x, y) = x 2 + 2y 2 subject to the constraint g(x, y) = 4x 6y = 25. (a) Show that the Lagrange equations yield 2x = 42, 4y = -62. (b) Show that if x = 0 or y = 0, then the...
-
In the real world, government provision of public goods usually entails the use of distortionary taxes to raise the required revenues. Consider the pure public good national defense, a good provided...
-
Investigators selected an SRS of 200 high school seniors from a population of 2000 for a survey of television-viewing habits, with an overall response rate of 75%. By checking school records, they...
-
Hi Tech Corporation provides customers with access to the latest advancements in technology and software. Hi Tech replaces employee workstation computers every three years. Printers are replaced...
-
The program manager for Channel 10 would like to determine the best way to allocate the time for the 11:0011:30 evening news broadcast. Specifically, she would like to determine the number of minutes...
-
4. 5. In which of following conditions a real gas would behave ideally? (a) Low pressure and low temperature ha (b) At value of temperature equal to its Boyle's temperature (c) Between its critical...
-
Planning is one of the most important management functions in any business. A front office managers first step in planning should involve determine the departments goals. Planning also includes...
-
A method that allocates an equal portion of the total depreciation for a plant asset (cost minus salvage) to each accounting period in its service life is a. Accelerated depreciation. b....
-
As accountant for Playtime Preschool, you want to convince the owner to purchase computers for the children to use. Explain that the company can depreciate the $10,000 investment and deduct the...
-
The path of a particle is defined by y 2 = 4kx, and the component of velocity along the y axis is v y = ct, where both k and c are constants. Determine the x and y components of acceleration.
-
What is community property (assets or value earned during marriage) versus separate property (what you had before marriage or what was a gift or inheritance)? 2. Does basis in the assets make a...
-
'How are elements of a Python tuple accessed?* O Through the 'get' function Ob. Using dot notation With the index` method Od. By referencing with indexing in brackets
-
How does the Command Line Interface (CLI) serve as a powerful tool for system administrators and developers, enabling efficient interaction with operating systems and applications through textual...
-
Describe the process of memory management in Python and discuss how the garbage collector functions.
-
A bank identifies an increase in the number of customers leaving the bank. Create a survey research plan - especially regarding relevant variables, theoretical models, and respondent criteria - that...
-
Piperidine, the amine reactant in parts (b) and (c) of the preceding problem, reacts with 1-bromonaphthalene on heating at 230C to give a single product, compound A (C15H17N), as a noncrystallizable...
-
A non-charmed baryon has strangeness S = 2 and electric charge Q = 0. What are the possible values of its isospin I and of its third component I z ? What is it usually called if I = 1/2?
-
Andy owns an appliance store where he has merchandise such as refrigerators for sale. Roger, a bachelor, owns a refrigerator, which he uses in his apartment for personal use. For which individual is...
-
Why did the Supreme Court rule in the Corn Products case that a gain due to the sale of futures contracts is ordinary income instead of capital gain?
-
When is the gain on the sale or exchange of securities by a dealer in securities classified as capital gain?
-
KLMN is a TV station that is selling slots on its Sunday local news program special for October 2023 (when we are in March 2023) in the up-front (i.e., "early") market. There are 5 slots of 30...
-
Answer each question by assuming that the rate for the smaller quantity and the rate for the larger quantity remain the same. Round your answer to two decimal places. a. If 1.5 pounds of fish cost...
-
blem 3: Consider the soil profile below. If the effective stress at point C is 111 kPa, find the value of h. (30) e=0.61 Gs=2.66 Ground Surface 4m 5m e=0.48 Gs=2.67 A PP A
Study smarter with the SolutionInn App