• Why are long-term assets depreciated over the useful life of the asset and not shown as an expense in the year they are purchased or developed? Do you agree with treating long-term assets this way? Why or why not?
• What are some of the challenges inherent to accounting for long-term assets and the accuracy of the financial statements?
• How could accounting methods, depreciate equipment, and other long-term assets be used to manipulate net income and asset values reported in the financial statements?
• Are there ethical issues involved in how companies account for long-term assets?