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A company has been depreciating its IT equipment over 5 (five )years, but now finds that it is becoming obsolete in 3 years.
What does the consistency principle allow the company to do?
A. change depreciation policy to 3 years and highlight the effect of this in its financial statements
B. change depreciation policy to 3 years without indicating the effect on profits
C. continue to depreciate over 5 years according to the existing policy
D. continue to depreciate over 5 years but note that after 3 years the equipment will be obsolete
Two companies enter into loan agreements on 1 March 2012. On that date they also enter into an agreement to swap the loans. The details for each company and loan are: L R R Hood
collection of data and methodology
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owner got personal loan from his bank and sign note payable.what is the journal entries?
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