Discuss how, in choosing the accounting methods below, the following ratios can be affected – rate of return on assets, quick ratio, profit margin, asset turnover: (a) a change in accounting method for depreciation from straight line to reducing balance. (b)revaluation of a non-current asset upwards at the beginning of the current year. (c) providing for an expected loss through obsolescence of certain items of merchandise inventory
Discuss how, in choosing the accounting methods below, the following ratios can be affected – rate of return on assets, quick ratio, profit margin, asset turnover: (a) a change in accounting method for depreciation from straight line to reducing balance. (b)revaluation of a non-current asset upwards at the beginning of the current year. (c) providing for an expected loss through obsolescence of certain items of merchandise inventory
Discuss how, in choosing the accounting methods below, the following ratios can be affected – rate of return on assets, quick ratio, profit margin, asset turnover: (a) a change in accounting method for depreciation from straight line to reducing balance. (b)revaluation of a non-current asset upwards at the beginning of the current year. (c) providing for an expected loss through obsolescence of certain items of merchandise inventory
Discuss how, in choosing the accounting methods below, the following ratios can be affected – rate of return on assets, quick ratio, profit margin, asset turnover:
(a) a change in accounting method for depreciation from straight line to reducing balance.
(b)revaluation of a non-current asset upwards at the beginning of the current year.
(c) providing for an expected loss through obsolescence of certain items of merchandise inventory.
Definition Video Definition Accounting method wherein the cost of a tangible asset is spread over the asset's useful life. Depreciation usually denotes how much of the asset's value has been used up and is usually considered an operating expense. Depreciation occurs through normal wear and tear, obsolescence, accidents, etc. Video
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