List (a) The similarities and (b) The differences in the accounting treatments of depreciation and cost depletion.
Question:
List
(a) The similarities and
(b) The differences in the accounting treatments of depreciation and cost depletion.
DepreciationDepreciation is an important concept in accounting. By definition, depreciation is the wear and tear in the value of a noncurrent asset over its useful life. In simple words, depreciation is the cost of operating a noncurrent asset producing...
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 68% (19 reviews)
a Depreciation and cost depletion are similar in the accounting sense in that 1 The cost of the asset is the starting point from which computation of ...View the full answer
Answered By
Asim farooq
I have done MS finance and expertise in the field of Accounting, finance, cost accounting, security analysis and portfolio management and management, MS office is at my fingertips, I want my client to take advantage of my practical knowledge. I have been mentoring my client on a freelancer website from last two years, Currently I am working in Telecom company as a financial analyst and before that working as an accountant with Pepsi for one year. I also join a nonprofit organization as a finance assistant to my job duties are making payment to client after tax calculation, I have started my professional career from teaching I was teaching to a master's level student for two years in the evening.
My Expert Service
Financial accounting, Financial management, Cost accounting, Human resource management, Business communication and report writing. Financial accounting : • Journal entries • Financial statements including balance sheet, Profit & Loss account, Cash flow statement • Adjustment entries • Ratio analysis • Accounting concepts • Single entry accounting • Double entry accounting • Bills of exchange • Bank reconciliation statements Cost accounting : • Budgeting • Job order costing • Process costing • Cost of goods sold Financial management : • Capital budgeting • Net Present Value (NPV) • Internal Rate of Return (IRR) • Payback period • Discounted cash flows • Financial analysis • Capital assets pricing model • Simple interest, Compound interest & annuities
4.40+
65+ Reviews
86+ Question Solved
Related Book For
Intermediate Accounting
ISBN: 978-0470423684
13th Edition
Authors: Donald E. Kieso, Jerry J. Weygandt, And Terry D. Warfield
Question Posted:
Students also viewed these Accounting questions
-
List several similarities and differences between electric and magnetic forces.
-
List as many similarities and differences between sound waves and light waves as you can.
-
List two similarities and two differences between hemoglobin and myoglobin.
-
Let B > 0. Show that the maximum of (x 1 , . . . , x n ) = x 1 + + x n subject to x 2 1 + + x 2 n = B 2 is nB. Conclude that for all numbers a,..., an lal++lanl n(a + + a) / 1/2
-
On December 6, 2016, Kestrel Company (a calendar year taxpayer) authorizes a cash donation of $40,000 to the Memphis Public Library. The pledge is carried out as follows: $10,000 on December 12,...
-
Explain the meaning of the following percentiles. (a) The 5th percentile of the weight of males 36 months of age is 12.0 kg. (b) The 95th percentile of the length of newborn females is 53.8 cm.
-
Eugene Incorporated had the following transactions involving current assets and current liabilities during February 2002. Additional information: 1. As of February 1, 2002, current assets were...
-
Information related to plant assets, natural resources, and intangibles at the end of 2012 for Lucy Company is as follows: buildings $1,100,000; accumulated depreciationbuildings $650,000; goodwill...
-
A company acquired an equipment on April, 1, 20X1, for an amount of 400.000. The initial estimated useful life was 8 years with a residual value of 20.000. At the beginning of year 20X5, management...
-
The Maple Lake branch of Buffalo State Savings Bank (BSSB) is a retail branch in a rapidly growing residential area. It services individuals and local businesses. To support its services, the branch...
-
Neither depreciation on replacement cost nor depreciation adjusted for changes in the purchasing power of the dollar has been recognized as generally accepted accounting principles for inclusion in...
-
Describe cost depletion and percentage depletion. Why is the percentage depletion method permitted?
-
Part of a contract between a union and a company guarantees that all manufacturing employees earn 5 hours of overtime each week. In the companys job costing system, should overtime be treated as a...
-
Locate sample affidavits used in a civil litigation for both California court and federal court. What do they have in common? Are there any striking differences?
-
What is meant by the precision interval? What are the four factors that affect the size of the computed interval ? Calculate the precision interval, at a confidence level of 90%, for the errors in...
-
Kauai Construction Company purchased a compressor for \(\$ 42,000\) cash. It had an estimated useful life of four years and a \(\$ 4,000\) salvage value. At the beginning of the third year of use,...
-
Tyler Company has a net income of $49,000 and the following related items: Using the indirect method, what is Tylers net cash flow from operations? Depreciation expense. Accounts receivable increase....
-
You have been asked to assist with the preparation of a statement of stockholders' equity for Minimus Company for the year ended December 31, 2019. You determine the following balances: Required...
-
What procedures can an employer use to control payroll fraud?
-
On October 31 Juanita Ortega, owner of Outback Guide Service, received a bank statement dated October 30. Juanita found the following: 1. The checkbook has a balance of $2,551.34. 2. The bank...
-
Figure 7-73 shows an eight-bit shift register that could be used to delay a signal by 1 to 8 clock periods. Show how to wire a 74151 to this shift register in order to select the desired Q output and...
-
The financial statements of Hudsons Bay Company for its year ended February 3, 2018 (fiscal 2017) appear at the end of this book. Instructions a. What alternative formats could the company have used...
-
Pike Corporation, a clothing retailer, had income from operations (before tax) of $375,000, and recorded the following before-tax gains/(losses) for the year ended December 31, 2020: Gain on disposal...
-
Refer to the information in E18.31. Tyler Financial Services performs bookkeeping and taxreporting services to startup companies in the Oconomowoc area. On January 1, 2020, Tyler entered into a...
-
ces Prepare a horizontal analysis of both the balance sheet and income statement. Complete this question by entering your answers in the tabs below. Analysis Bal Analysis Inc Sheet Stmt Prepare a...
-
XYZ Corporation presents in its accounting books the following items related to its income: Sale income $2,000,000 Cost of Goods Sold (1,300,000) Savings account interest income 1,000 New York City...
-
Crane Company Division B recorded sales of $71,700, variable cost of goods sold of $49,600, variable selling expenses of $19,300, and fixed costs of $12,400, creating a loss from operations of...
Study smarter with the SolutionInn App