Essays Tagged: "Fixed asset"

What is depreciation?

DepreciationFixed assets are those assets of the business that have a long life, are used in the business and ar ... vehicles, machinery, buildings, land, office equipment, etc.However, usually, except for land, most fixed assets have a limited number of years of useful life.Depreciation can be defined, in its simpl ...

(1 pages) 154 4 1.4 Nov/2002

Subjects: Businesss Research Papers

Finacial Management Investment Appraisal and Finance of "New Printer" Project

invest the project and anticipate the profits and risk.1. Investment Budget1.1 Investment Budget of Fixed AssetThe fix asset investment includes plant constructing, vehicles purchasing and staff train ... e table below shows the composition of fix asset investment:Num. Item Amount( ) Percentage in total fixed asset investment %1 Constructing 1,500,000 50%2 Vehicles purchasing 100,000 33.3%3 Staff train ...

(9 pages) 467 0 3.0 Apr/2003

Subjects: Social Science Essays > Economics

Definition of depreciation, facts and causes.

from the Latin word 'Depretium' which means 'decline in price' or 'value'. Depreciation relates to fixed assets which loose value on account of usage. Therefore 'Depreciation' means decline in value ... ance sheet is supposed to exhibit a true and fair financial position of the concern. That means the fixed assets must be shown at their proper value to the business as a going concern. True value woul ...

(3 pages) 133 1 3.0 Dec/2003

Subjects: Businesss Research Papers > Accounting

Analysis of difference between revenue and capital expenditure by using example of WorldCom Inc. bankruptcy case.

s"(FT). Management of the corporation simply recorded some of the revenue expenses as investment in fixed assets (capital), which gave them opportunity to spread short-term costs over longer period of ... will have a direct negative effect on the current year`s profit figure.When a company increases its fixed assets or buys some capital, eg. machinery, equipment, for the long-term use. It will not have ...

(6 pages) 217 0 4.7 Mar/2004

Subjects: Businesss Research Papers > Accounting

Provide a brief explanation of the factors that affect the price of a call option.

the factors that affect the price of a call option.A call option is basically an option of buying a fixed asset at a fixed price before a given date. These assets can come in the form of different fin ... ces?As with call options, bond prices have an inverse relationship top interest rates. A bond has a fixed rate of interest when purchased over a set time. For example if the national interest rate, se ...

(8 pages) 58 0 5.0 Jun/2004

Subjects: Businesss Research Papers > Marketing

Accounting Fundamentals assignment

e same transaction on the liability/equity side of the accounting equation. So if you purchase some fixed assets on credit you must put the fixed asset in the asset side under fixed asset then since i ... s, plant and equipment will be depreciated every 5-15 years.Question 8:a) What is the 2003 value of fixed assets?$26046b) What method of depreciation is used?Depreciation is calculated in Straight Lin ...

(9 pages) 320 0 2.6 Nov/2004

Subjects: Businesss Research Papers > Accounting

Balance sheet

s not reflect the true value of the company.Also, the value of a company is not just the sum of its assets minus its liabilities. The present value of future profits adds to the value of a company. Th ... orted in the Balance Sheet which can add to or subtract from the value of a company. The intangible assets of the company are hard to evaluate. A team of ten experienced professional is definitely muc ...

(4 pages) 230 0 3.0 Feb/2005

Subjects: Businesss Research Papers > Accounting

Brief summary of Balance sheets, their used, equations, etc

may have been used to buy long-term assets or short-term assets. The long-term assets are known as fixed assets, and help the firm to produce. Examples would be machinery, equipment, computers and so ... stocks and debtors.The top half of the balance sheet will therefore be made up of the total of the fixed and current assets, less any current or long-term liabilities the firm may have (creditors, lo ...

(1 pages) 145 1 4.7 Mar/2005

Subjects: Businesss Research Papers > Accounting

In practice, do you think YOUR firm should go to the time and expense of implementing a capital budgeting system into the planning process?

"Capital budgeting ~ the process of analysing potential fixed asset investments. Capital budget decisions ~ probably the most important ones financial manag ...

(4 pages) 121 0 3.3 Aug/2005

Subjects: Businesss Research Papers > Accounting

Analyzing the Master Budget Simulation.

ation carrier to off set some of their operating expenses.D. When Salud Foods company increases its fixed assets or buys some capital, e.g. machinery or equipment, for the long-term use. It will not h ... al spending does not affect current year's profit and is not stated in the profit and loss account. Fixed assets affect business's financial position over several accounting periods in the form of dep ...

(3 pages) 138 0 3.0 Nov/2005

Subjects: Businesss Research Papers > Accounting

Inflation Accounting

asset was acquired on January 2, 2000. Price indexes for the five years are:2000 2001 2002 2003 2004Fixed asset index 100 95 108 120 125General price index 100 110 115 112 125Compute the current value ... nding I will say that RRHGF is calculated by subtracting the general price index component from the fixed price index component where the general price index component is calculated as "(General price ...

(4 pages) 158 0 3.7 Feb/2006

Subjects: Businesss Research Papers > Accounting

Eustacia's Self Conflict

f many unexplainable phenomenon that occurs randomly without any certain routine. Yet choice is the fixed asset of any living thing that strives to mold one's own path. Success or failure in one's own ...

(3 pages) 300 0 0.0 Nov/2001

Subjects: Literature Research Papers

Accounting For Goodwill

he proposed style for goodwill is in FASB's exposure draft for Business Combinations and Intangible Assets-Accounting for Goodwill. Impairment testing of goodwill has several guidelines, and the basic ... ccur indicating that an impairment might exist.¨ At the time of the impairment test all, assets and liabilities will also be looked at as a reporting unit.¨ To insure that an ent ...

(8 pages) 52 0 0.0 Nov/2001

Subjects: Businesss Research Papers

Adjusting and Closing Entries

e. The statement of financial position helps correct accrual basis balances in relation to relevant asset and liability accounts.Adjusting entries can be divided up into five categories prepaid expens ... usting entries can be divided up into five categories prepaid expenses, depreciation of non current assets, accrued expense, accrued revenue, and unearned revenue.Overall, correcting errors in only on ...

(1 pages) 1592 0 4.0 Feb/2008

Subjects: Businesss Research Papers > Accounting

Current and Non-Current Assets, The Order of Liquidity

to become cash within the next year," (Investorwords, 2008). Examples of non-current assets include fixed assets, leasehold improvements, and intangible assets, (Investorwords, 2008).The differences b ... vestments are the next item on the balance sheet. These include investments in securities, tangible fixed assets not currently used in operations, special funds, and investments in affiliated companie ...

(3 pages) 177 0 4.5 Jul/2008

Subjects: Businesss Research Papers > Accounting

Analyzing Lease vs Buying Decisions

an operating lease, under what circumstances is a capital lease a better alternative than buying an asset, and how do qualitative factors like the condition of an asset impact a final lease or buy dec ... e chose to lease the spectrometer; we would not have had any tax deductions and not had a long term asset.In the third scenario, it is now year six of Bonnesante's operators. The company plans to oper ...

(5 pages) 71 0 0.0 Dec/2008

Subjects: Businesss Research Papers > Marketing

Asset Measurement, and Accounting Policies and Standards

If we look at a reporting entity's balance sheet we will see a total given for all the entity's assets (this is a requirement of AASB101). This aggregate total is derived by adding together the va ... . This aggregate total is derived by adding together the various classes of current and non-current assets. Do you think it is appropriate that the various classes of assets are simply added together, ...

(4 pages) 47 0 1.0 Sep/2009

Subjects: Businesss Research Papers > Accounting

Current and Noncurrent Assets Paper

rding to Vince Hanks of Back to Basics, Property, Plant, and Equipment (PPE), often referred to as "fixed assets," are noncurrent assets owned or controlled by a company and used to produce or distrib ...

(3 pages) 62 0 1.0 Nov/2009

Subjects: Social Science Essays > Economics

Current & NonCurrent Assets PaperWhat are current & non-current assets? What differs b/w current & non-current assets? What is the order of liquidity? How does the order of liquidity apply to the balance sheet?

: leasehold improvements, long-term investments, long-term notes receivable, intangible assets, and fixed assets such as property, plant and equipment (Simple Studies, 2010).ContrastThe difference bet ... nd or buildings not currently used in operations. Property, plant, and equipment are referred to as fixed assets and are "assets with relatively long useful lives that a company is currently using in ...

(3 pages) 37 0 0.0 Jun/2010

Subjects: Businesss Research Papers > Accounting

Accounting convention

ed that it is not a holding company.Historic cost convention:This convention holds that the cost of assets shown on the balance sheet must be based on their historic cost (that is acquisition cost). T ... alance sheet must be based on their historic cost (that is acquisition cost). This way of measuring asset value is preferred over other methods based on some form of current value.Many people find the ...

(3 pages) 0 0 0.0 Nov/2012

Subjects: Businesss Research Papers > Accounting