st to be paid using a loan from Bank of Newington is $200k. Question Newington Bank is considering legal action because it has not received any loan repayment. Assist the company in identifying who is liable for the debt.
st to be paid using a loan from Bank of Newington is $200k. Question Newington Bank is considering legal action because it has not received any loan repayment. Assist the company in identifying who is liable for the debt.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Depreciation Methods
The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.
Depreciation Accounting
In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.
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Three friends agreed to start a printing business called BZ printing. The manager is Lorine and the assistant manager are Jarret and Sandra. After one month of the business being established, the manager, Lorine, decided to renovate their office and the cost to be paid using a loan from Bank of Newington is $200k.
Question
Newington Bank is considering legal action because it has not received any loan repayment. Assist the company in identifying who is liable for the debt.
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