Essays Tagged: "Asset"
What is depreciation?
DepreciationFixed assets are those assets of the business that have a long life, are used in the business and are not ... es, 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 simplest te ... reciation can be defined, in its simplest terms, as the difference between the original cost of the asset and the amount received when the asset is sold, for example, if Pepe buys a motor vehicle for ...
Subjects: Businesss Research Papers
Definition of depreciation, facts and causes.
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 of fix ... y be defined as the permanent and continuing diminution in the quality, quantity or the value of an asset.William PicklesDepreciation in the shrinkage in the value of an asset at a given date as compa ...
Subjects: Businesss Research Papers > Accounting
Basic accounting concepts in the case of the Volkswagen AG
ationship between the business and its owner is shown on the balance sheet, which states the firm's assets and liabilities and hence indicates its financial position and well-being. The effect of the ... oth the original balance sheet above and the Table 2. below shows that this is equal with the total assets.The entity concept in the case of the Volkswagen AGMillion December 31, 2001 December 31, 200 ...
Subjects: Businesss Research Papers > Accounting
Depreciation
esents the expired portion of cost. Depreciation is the mechanism by which the original cost of the asset is allocated over the estimated number of accounting periods that match the useful economic li ... r the estimated number of accounting periods that match the useful economic life of the non-current asset. In doing this, the allocations are based on the assumptions that:The useful life of the asset ...
Subjects: Businesss Research Papers > Accounting
Business studies
0 - 200 000 X 10050 000= 60:1v) Net Profit Ratio = $ 50 000 X 100500 000= 10:1vi) Return on Assets = $ 50 000100 000= 50:1[B]i) Balance Sheet - See Over Pageii)iii)[C]i) Acco ... Balance Sheet - See Over Pageii)iii)[C]i) Accounting Equation is Owners Equity = Assets - Liabilities$11 090m = $26470m - $15391mii) Total assets have increased overall by $ ...
Subjects: Businesss Research Papers > Accounting
AMP Company.
Introduction.AMP has today flagged a possible $1.2 billion write down of its troubled offshore assets. The Chief Executive Andrew Mohl says AMP believes the carrying value of these assets is unli ... lance sheet. Therefore, he says the write- downs will largely be goodwill and not impact on the net assets of AMP's UK businesses. As the issue above, we make some definitions, analysis and comments.1 ...
Subjects: Businesss Research Papers
Dunham Cosmetics - Financial Evaluation
1.Calculate Dunham's 1995 financial rations. (See Exhibits 1,2, and 3).Current Ratio = (current assets/current liabilities) = (16,268/7,600) = 2.1405%Inventory Turnover = (sales/inventory) = (26,6 ... 26,671/6,133) = 4.3487%receivable____ = 5,920___ = 81.01 DaysDSO = annual sales/365 26,671/365Fixed Asset Turnover = (sales/net fixed assets) = (26,671/3,336) = 7.9949%Total Turnover Asset = (sales/to ...
Subjects: Businesss Research Papers > Case Studies > Clothing, Footwear and Cosmetics
Case Study-Wilson S.A option
market price of the gold can create gain or loss. Therefore, this future contract can be financial asset if they involve gain and financial liability if they involve loss. The company managed its sal ... 00) more than those in 20x5; when we move on to discuss "long-tem debt" section, although the total assets in 20x6 were $7,298,000 (11,487,000-18,785,000) less than those in 20x5. In our opinion, it w ...
Subjects: Businesss Research Papers > Case Studies > Clothing, Footwear and Cosmetics
Accounting assignment
erest if she deposits in bank D.Q2- You have been asked for your advice in selecting a portfolio of assets and have been supplied with the following data:YearExpected ReturnAsset A Asset BAsset C20011 ... ities have been supplied. You have been told that you can create two portfolios - one consisting of assets A and B and the other consisting of assets A and C -by investing equal proportions (i.e.50 pe ...
Subjects: Businesss Research Papers > Accounting
Financial Ratio Analysis of Metalrax Plc.
asing fix cost may induce to increase cost of sales. In 2005, Metalrax invests 3.7 million on fixed assets that tremendously increase cost per unit. Therefore, Metalrax should consider selling any fix ... g Profit- 34.09%Profit before Taxation- 35.05%Profit after Interest and Taxation- 51.97%Non-Current Assets+ 13.57%Current Assets- 10.47%Stock- 3.67%Debtors+ 11.26%Cash- 73.80%Total Assets- 0.48%Curren ...
Subjects: Businesss Research Papers > Accounting
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 ...
Subjects: Businesss Research Papers
Clarkson Lumber Company Case Study Analysis
e financing needs of the past have been met by taking a term loan of $399,000 that was fixed by the assets the company had. Mr. Clarkson had control liabilities that were offset by the increase in sal ... g formulas, which is derived from the 1996 Pro Forma Balance Sheet (figures are in thousands):Total Assets - Total Liabilities - Net Worth 2179 - 533 - 1395 = 251Following the 251 that would be needed ...
Subjects: Businesss Research Papers > Case Studies
Acquisition of YVC
thod the maximum value of YVC shares will be 8 X 9 423 = $75 384Reasonable TestTo calculate the Net Asset Value, there are three methods that we can use: Replacement value; Market value and Net Book V ... ly use Market Value because it reflects on cash that we can receive if the company were to sell its assets at this point in time.Net Replacement Value Calculation $'000Total Assets 56 376Cash 1 884U.S ...
Subjects: Businesss Research Papers > Accounting
Current and Non-Current Assets, The Order of Liquidity
�PAGE � �PAGE �5� Current and Non-Current Assets Current and Non-Current AssetsLaura GabbardUniversity of PhoenixACC 400 Accounting for Decisi ... y of PhoenixACC 400 Accounting for Decision MakingPeter IovenoApril 13, 2008Current and Non-Current AssetsCurrent assets are items on a balance sheet. According to Investorwords, current assets equal ... ash equivalents, accounts receivable, inventory, marketable securities, prepaid expenses, and other assets that could be converted to cash in less than one year," (2008). If a company goes bankrupt, c ...
Subjects: Businesss Research Papers > Accounting
Accounting Problems Cycle and Paper
the Fundamental Accounting Principles book to get the following answers:cashacct rec.suppequipbuild Asset totalsA$60,000 $30,000B$50,000 $250,000balance$10,000 $30,000 $250,000 $290,000C$6,000 $6,000b ... g EquationFor exercise 1-7 I used the following equation to solve these problems:Accounting EquationAssets = Liabilities + Equity or Assets- Liabilities = EquityA. Mr. FongB. BeyonceAssets$123,000 Ass ...
Subjects: Businesss Research Papers > Accounting
Business Plan
wner's equity during the period. The balance sheet shows the balance, at a particular time, of each asset, each liability, and owner's equity. It proves that the accounting equation (Assets = Liabilit ... fective and efficient operations, and compliance with applicable laws and regulations. Safeguarding assets against theft and unauthorized use, acquisition, or disposal is also part of internal control ...
Subjects: Businesss Research Papers > Accounting
Accounting & finance -Ratio analysis of company NEXT
yed, irrespective of how those resources have been financed.Profit before taxation + Interest=Total assets - current liabilities20082007498.1 + 43.3478.4 + 33.11630.4 - 1042.51571 - 738.5=541.4511.558 ... 61.4%It shows that the next company utilize the available resources of company very effectively.2) Asset TurnoverThe assets turnover ratio is which indicates the amount of sales that generated from e ...
Subjects: Businesss Research Papers > Accounting
Accounting - Income Statements, Balance Sheets
nterest or rental payment. Expenses are decreases in the owners' equity in the form of reduction of assets or increases in liabilities. Example of expenses are: salaries or wages, rent, telephone, rep ... Sheet is a report that shows the financial position at a specific point in time. It shows how much assets have been accumulated at the end of the accounting period, how much payables are still outsta ...
Subjects: Businesss Research Papers > Accounting
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?
Current and Non-Current Assets PapernameACC/400: Accounting for Decision MakingMay 10, 2010instructor�Current and Non ... pernameACC/400: Accounting for Decision MakingMay 10, 2010instructor�Current and Non-Current Assets PaperAssets are "resources owned by a business" (Kimmel, Weygandt & Kieso, 2007, p. 10) w ... ed "to increase the value of a firm or benefit the firms operations" (Investopedia, 2010, para. 3). Assets are necessary because they are used to fund operations and expenses of a business. Assets are ...
Subjects: Businesss Research Papers > Accounting
Intellectual Capital
AND THE GROWTH OF ORGANISATIONIn this era of modern world, Intellectual capital is a real business asset, although measuring it is a very subjective task. Companies spend millions annually training t ... t doesn't appear on the company balance sheet but it has more value for organizations than physical assets. Economic wealth is driven more by knowledge and information than the production process.The ...
Subjects: Businesss Research Papers > Management > Human Resource Management