Long term assets - Depreciation
11 important questions on Long term assets - Depreciation
What is it called when costs of a major asset are allocated to many periods, when those costs will yield revenue?
Is the process of depreciation connected with the market value of the asset?
Which two factors impact the declining usefulness of an asset over time?
Obsolescence
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What is typical of accelerated depreciation?
What do most businesses do to depreciate assets acquired at a random point in the year?
What are the two major methods of depreciation? What does the second type mean?
How is years of useful life and residual value estimated?
What does management do if an asset's estimate proves to be inaccurate and must be revised?
What is an instance when a company might depreciate assets less in early years of life and more as years go by?
What credit offsets the cash and accum depreciation debits when an asset is sold?
What do international accounting standards permit in place of conventional depreciation?
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