Introduction – Funds Accounting (#1) MULTIPLE CHOICES 1. Which of the following is a distinguishing characteristic of a nonbusiness organization? a. Its revenues do not exceed its expenses b. There is an absence of ownership interests that can be sold‚ transferred‚ or redeemed c. It does not depreciate its capital assets d. It does not charge fees for any of its services Answer: b 2. Which of the following activities
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INTANGIBLE ASSET ACCOUNTING AND ACCOUNTING POLICY SELECTION IN THE FOOTBALL INDUSTRY by NICHOLAS ROWBOTTOM A thesis submitted to the Faculty of Commerce and Social Science of The University of Birmingham for the degree of DOCTOR OF PHILOSOPHY Department of Accounting and Finance School of Business Faculty of Commerce and Social Science The University of Birmingham July 1998 University of Birmingham Research Archive e-theses repository This unpublished thesis/dissertation is copyright
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importance of depreciation expenses. Depreciation as a concept and in practice plays a very important role in a company ’s cash flow hence in funding. The reason ’s are basically two‚ firstly because depreciation is a way of self finance for an organization and secondly because is a way of decreasing taxes that the government claims as the company doesn ’t have to pay taxes on depreciation which consequently enlarges the cash flow of the company. As a term depreciation in accounting is the process
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Depreciation of Fixed Assets Depreciation A business may acquire fixed assets such as land‚ buildings‚ machinery‚ office equipment‚ delivery equipment and natural resources (e.g. a piece if mining land)to help in the process of its operations to earn revenue in order to make a profit. Such assets‚ by their very nature‚ provide benefits to the business for more than one financial year or period. In fact‚ when a business buys a fixed asset at a certain cost (say $10‚000)‚ it is actually buying
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CURRENCY DEPRECIATION AND ITS IMPACTS Devaluation means decreasing the value of nation’s currency relative to gold or the currencies of other nations. Devaluation occurs in terms of all other currencies‚ but it is best illustrated in the case of only one other currency. Devaluation and Depreciation are sometimes used interchangeably‚ but they always refer to values in terms of other currencies and the value of currency is determined by the interplay of money supply and money demand. In common modern
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ELEMENTS OF DEPRECIATION COMPUTATION Depreciation accounting may be defined as a systematic procedure for allocating the cost of a long-lived asset over its useful life. The determination of the depreciation expense of a period depends on three basic elements. These are: • Depreciation Base. The cost to be allocated over the period of use is known as the depreciation base. This consists of the initial purchase cost of the asset minus any salvage value expected at the time of retirement plus
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units. The asset cost $ 100 000 and associated installation costs amounted to $20 000 and residual value is $5000. The amount of depreciation charged in the first year is: Selected Answer: c. $42 000 Correct Answer: b. $40 250 Question 5 0 out of 1 points If a sale and leaseback transaction results in a finance lease‚ IAS 17 Leases‚ provides the following accounting treatment for any excess of sales proceeds over the carrying amount: Selected Answer: a. immediately recognise as income
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practice of depreciation and depletion play an integral part in a company ’s cash flow and profit or loss statements. Depreciation‚ according to investopedia is a method of allocating the cost of a tangible asset over its useful life. Depletion is very similar to depreciation with very subtle differences‚ the first one being what is depreciated verses depleted. All assets (except land) are depreciated but the assets with natural resources are depleted. The methods on how depreciation and depletion
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Depreciation is the decline in the future economic benefits of a depreciable non-current asset through wear and tear and obsolescence. It is an allocation process. It can be calculated by two main methods‚ each reflecting in a distinct prospect in the way the asset is used. Depreciation is to be treated as an estimated expense that does not set aside cash for the replacement of a non-current asset. In determining the cost of acquisition of the lathes‚ any capital expenditure made must be added
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assets depreciate. Depreciation is defined as a non-cash expense that reduces the value of an asset as a result of physical or functional factors over time. Therefore‚ the costs of the fixed assets should be recorded as an expense over their useful lives‚ since they depreciate and must be replaced once the end of their useful life is reached. Physical depreciation factors include wear and tear during use or from being exposed to such things as weather. Functional depreciation factors include obsolescence
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