Why depreciation must recorded on company accounting records

Assignment Help Accounting Basics
Reference no: EM132227656

Question - Assume that you are the accountant for Computer Consultants. Prior to this year, Computer Consultants operated out of a leased office. However, the company purchased its own office building this year. The building is in an area where real estate values have been increasing an average of 6 percent per year.

The owner of Computer Consultants has asked why you recorded depreciation on the building if real estate values are appreciating. Explain to the owner explaining why depreciation must be recorded on the company's accounting records.

Reference no: EM132227656

Questions Cloud

Please explain computer literacy : Please explain computer literacy. Summarize some security concerns of the Internet and computer use.
Describe relationship between emotionally effective leaders : Describe the relationship between emotionally effective leaders and their ability le to inspire workers to attain business objectives?
What is the frequency of the transmitted signal : An ideal AM balanced modulator has a single frequency of 6kHz with a local oscillator (carrier) frequency of 100 kHz. What is the frequency of the transmitted
Identify some reasons that online learning succeeds or fails : Identify some reasons that online learning succeeds OR fails? Choose a point of view and support it using examples from outside sources.
Why depreciation must recorded on company accounting records : Assume that you are the accountant for Computer Consultants. Explain to owner explaining why depreciation must be recorded on the company's accounting records
How much risk does it impose on it data security : Why is it legal to practice ethical hacking and how much risk does it impose on IT data security?
Whs policy and equal opportunities policy : You will need to follow WHS policy and Equal opportunities policy
Discuss the cultural differences in detail : Within the context of the narrative presented above, discuss 4 cultural differences (Scollon and Scollon, 1995) that may have prompted the Toraja communities.
Arguments in terms of the truth values of formulas : Prove that the formulas given in Question 1 (i) and (ii) above have the corresponding properties, by means of semantic arguments in terms of the truth values

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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!

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