Are depreciation, depletion and amortization similar, Basic Statistics

Are depreciation, depletion and amortization similar?
In accounting the terms depreciation, depletion and amortization often involve the movement of costs from the balance sheet to the income statement in a systematic and logical manner.For example, the systematic expensing of the cost of assets such as buildings, equipment, furnishings and vehicles is known as depreciation.
The systematic expensing of the cost of natural resources is referred to as depletion. The systematic expensing of other long-term costs such as bond issue costs and organization costs is referred to as amortization.Depreciation, depletion and amortization are also described as noncash expenses, since there is no cash outlay in the years that the expense is reported on the income statement. As a result, these expenses are added back to the net income reported in the operating activities section of the statement of cash flows when it is prepared under the indirect method.The term amortization is also used to indicate the systematic reduction in a loan balance resulting from a predetermined schedule of interest and principal payments.
Expertsmind.com offers unique accounting assignment help
Posted Date: 3/31/2012 8:46:55 AM | Location : United States







Related Discussions:- Are depreciation, depletion and amortization similar, Assignment Help, Ask Question on Are depreciation, depletion and amortization similar, Get Answer, Expert's Help, Are depreciation, depletion and amortization similar Discussions

Write discussion on Are depreciation, depletion and amortization similar
Your posts are moderated
Related Questions
Marks(less than)-10,20,30,40,50,60,70,80 Number of students-4,8,25,34,41,46,50,60 Draw a median graph for the followin

A researcher working for a drug company is interested in investigating the effect of storage on the potency of one of the company's drugs. 10 freshly produced bottles of the drug a


what is difference between histogram and historigram

At a tennis tournament a statistician keeps track of every serve. The statistician reported that the mean serve speed of a particular player was 102 miles per hour (mph) and the st


normal distribution and the sampling distributions of sample proportions and sample means, but without confidence interval

What is a basis point? A base factor is a hundredth (1/100) of an amount factor. Indicated another way, one amount factor is equal to 100 base factors. This means that if an amo

highlight four characteristics and four functions of statistics

The U.S. Department of Transportation reported that during November, 83.4% of Southwest Airlines’ flights, 75.1% of US Airways’ flights, and 70.1% of JetBlue’s flights arrived on t