|1 |The time period assumption states that |D | | |a. a transaction can only affect one period of time. | | | |b. estimates should not be made if a transaction affects more than| | | |one time period. | | | |c. adjustments to the enterprise ’s accounts can only be made in | | | |the time period when the business terminates its operations. | | | |d. the
Premium Generally Accepted Accounting Principles Balance sheet Depreciation
Other Issues Pro Forma Financial Statements and Project Cash Flows Getting Started: Pro Forma Financial Statements Project Cash Flows Projected Total Cash Flow and Value More about Project Cash Flow A Closer Look at Net Working Capital Depreciation Evaluating Equipment Options with Different Lives Project Cash Flows Relevant Cash Flows Cash flows that occur (or don ’t occur) because a project is undertaken. Cash flows that will occur whether or not we accept a
Premium Depreciation Cash flow
Financial Accounting Summary Financial Accounting – Summary Notes Financial Accounting – Summary Notes 1 Financial Statement Basics 3 Understanding of the 3 financial statements – (balance sheet‚ income statement and statement of cash flows). What does each financial statement represent? 3 What is the structure of each statement? 3 What is the link between the three statements? 4 Understanding of the basic mechanics of financial accounting – (debits‚ credits‚ transaction journal entries‚ adjusting
Premium Depreciation Generally Accepted Accounting Principles Asset
construct the corresponding adjusting entries on October 31. (a) One month of the company’s rent expired during October. (b) The company’s equipment originally cost $30‚000 and was expected to benefit the company for 5 years. Straight line depreciation method is used. Assume a $5‚000 salvage value. (c) The company’s employees earned $400 during the last week of October that will be paid on
Premium Balance sheet Generally Accepted Accounting Principles Depreciation
200930 June 2012 | Transfer of non-current asset at 30/06/2009Gain on sale EquipmentDeferred Tax Asset Income Tax ExpenseDepreciation of computer three years after transferRetained EarningsDeferred Tax Asset ComputerAccumulated Depreciation Depreciation Retained EarningsIncome Tax ExpenseRetained Earnings Deferred Tax Asset | 6‚0001‚8004‚2001‚8003‚600360720 | 6‚0001‚8006‚0001‚2002‚4001‚080 | 30 June 2012 | Intragroup borrowingsLoan Payable Loan ReceivableInterest Revenue
Premium Balance sheet Generally Accepted Accounting Principles Taxation
investments can be written often in the same period in which the expenses occur. Question 3: 2D1-AT05 Which one of the following is most relevant to a manufacturing equipment replacement decision? disposal price of the old equipment. original cost less depreciation of the old equipment. a lump-sum write-off amount from the disposal of the old equipment. gain or loss on the disposal of the old equipment. Relevant costs and revenues include cash flows caused by the decision. The disposal price of the old
Premium Net present value Depreciation Capital budgeting
------------------------------------------------- Depreciation Depreciation is the way in which items lose their value as time progresses. For example‚ a van bought by a business for $10‚000 might only be worth $5‚000 in 2 years time and therefore it has depreciated in value. There are several methods of working out depreciation‚ the fixed percentage method whereby a certain % is taken from the value each year. This is a relatively accurate estimate of depreciation. The most commonly used method (the straight
Premium Expense Income statement Balance sheet
INTRODUCTION The accounting concepts are rules and guidelines which the accountant follows and uses when deciding between differing options to make. They help to ensure the accounting information is presented accurately and consistently. All formal accounting statements should be created‚ preserved and presented according to the concepts and conventions’. The following will look at each of the concepts and conventions and relate them to the profit and loss account for a sole trader. GOING
Premium Depreciation
Question 6B 19 Reference List 24 INDEX OF TABLES AND FIGURES Table 1 Recording of Transaction 4 Table 2 Depreciation Straight Line Method - Summary 5 Table 3 Depreciation Straight Line Method 5 Figure 1 Depreciation Straight Line Method 5 Table 4 Depreciation Reducing Balance Method (3 Year) 6 Table 5 Depreciation Reducing Balance Method (7 Year) 6 Figure 2 Depreciation Reducing Balance Method (7 Year) 7 Table 6 Reducing Balance Method 18.376673% 7 Figure 3 Reducing Balance Method
Premium Depreciation Balance sheet Inventory
Principles of Quantitative Methods 2011 Table of Contents Question 1 – Difference between Simple Interest and Compound Interest 3 1.0 Simple Interest 3 1.1Compound Interest 4 Question 2 – Difference between Depreciation by Straight Line Method and Depreciation by Reducing Balance Method 6 2.0 The Difference 6 Question 3 - Standard Deviation and Quartile Deviation 7 Standard Deviation 7 Quartile Deviation 8 3.0 Purpose of Calculating Standard Deviation and Quartile Deviation 8 3
Premium Standard deviation Depreciation Median