User Account

All Pages

Applicability of historical cost principle to plant asset

Assignment Help Accounting Basics
Reference no: EM131031411

What is the applicability of the historical cost principle to plant assets?

How do you determine the cost of an asset? Land? Building? Equipment?

(a) What is salvage value?

(b) Is salvage value used in determining periodic depreciation under each depreciation method?

Compare and contrast the straight-line method, double declining method and the units-of-activity method

Distinguish between revenue expenditures and capital expenditures during useful life.

How is a gain or loss on the sale of a plant asset computed?

What are natural resources, and what are their distinguishing characteristics? What is depletion?

What are intangible assets, and what are their distinguishing characteristics? What is amortization?

What are the similarities and differences between the terms depreciation, depletion, and amortization?

You are comparing two companies in the same industry. You have determined that Ace Corp. depreciates its plant assets over a 40-year life, whereas Liu Corp. depreciates its plant assets over a 20-year life.

Discuss the implications this has for comparing the results of the two companies.

Comment on the usefulness of these ratios:

1. current ratio

2. Receivable turnover

3. inventory turnover ratio

4. Debt to total assets

5. times interest earned ratio

6. return on common stockholders' equity ratio

7. Profit margin ratio

8. Gross profit rate

9. earnings per share

10. Price to earnings, PE ratio

2. How do you calculate each ratio?

Reference no: EM131031411

Questions Cloud

Purpose of accounting and financial reporting : The purpose of accounting and financial reporting within your organization or an organization with which you are familiar.
Discuss your position on executive compensation : Discuss your position on executive compensation. Is executive compensation excessive or appropriate?
State differences between role of rn and your role in health : State two differences between the role of the RN and your current role in healthcare. Explain two ways you will begin to look at your current practice differently in an effort to transition to the role of the registered nurse.
To develop appropriate annual goals : To develop appropriate annual goals which of the following areas should  NOT be considered on those goals: - Customer satisfaction - Cost of poor quality
Applicability of historical cost principle to plant asset : What are the differences between a direct-financing and a sales-type lease for a lessor - Why would a lessor provide direct-financing to a lessee?
Which of the following procedures is consistent : Which of the following procedures is consistent with the effective administration of a company's insurance function?a) The insurance manager receives billings for insurance coverage and disburses payments.b) Insurance coverage is adjusted annually ba..
Determine how many in-state and out-of state : The admission office at Tech wants to determine how many in-state and out-of state students to accept for next fall's entering freshman class. Tuition for in-state student is $7,600 per year while out-of- state tuition is $22,500 per year. A total of..
Analyze the implications of the issue for society : Analyze the implications of the issue for both society and the individual and discuss your ethical position. Read the Basic Outline of a Paper PDF to determine the type of information contained in the Introduction, body, and conclusion.
Project management techniques : NEXT: is Planning &Control 3:Project Management techniques,Quality Management,Process Control Methods

Reviews

Write a Review

Accounting Basics Questions & Answers

  Type of technique

Describe why or why not a pure service industry (e.g. accounting or law firms) may or may not be able to implement this type of technique

  Three different plans for financing a 5400000 corporation

three different plans for financing a 5400000 corporation are under consideration by its organizers. under each of the

  The trucks will have a useful life of seven years to raise

the diamond freight company has been offered a seven-year contract to haul munitions for the government. because this

  A standard cost approach

A fast-food restaurant uses a standard cost approach to aid in controlling its food cost. The following are the standard cost, sales prices, and quantities sold of each of the five items featured on the menu during a particular week:

  How to respond to the division managers friendly advice

What reason (other than reporting more accurately) do you think is motivating the man-ager's advice to you? Do you agree with the manager's statement that he's not asking you to fake the numbers? Do you agree with the manager's statement about not ha..

  A standard cost system provides hickory furniture

hickory furniture company manufactures unfinished oak furniture. hickory uses a standard cost system. the direct labor

  A company originally recorded prepaid rent as of the end

a company originally recorded prepaid rent. as of the end of the accounting year part of this is no longer prepaid. if

  Graff company had cash of 42600 net accounts receivable of

graff company had cash of 42600 net accounts receivable of 96500 and net sales of 746000. last years net accounts

  Measurable or observable characteristics

This preparation process involves looking at the characteristics of the receivers of the sender's message.

  The cavy company estimates that the factory overhead for

the cavy company estimates that the factory overhead for the following year will be 1250000. the company has decided

  Problem regarding the constitute the entire set of outcomes

Six simple events, with probabilities P (E1) = 0.11; P (E2) = P (E5) = 0.20; P (E3) = 0.25; P (E4) = 0.09; P (E6) = 0.15, constitute the entire set of out- comes of an experiment. The following events are of interest:

  Hart company purchased a depreciable asset for 360000 the

hart company purchased a depreciable asset for 360000. the estimated salvage value is 24000 and the estimated useful

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd