Why do most of the firms select straight-line depreciation for book depreciation?

Q: Discuss the difference between the straight-line method of depreciation and the accelerated methods.…

A: The key difference between straight-line method and the accelerated method is that, under…

Q: practice, would you expect the depreciation expense for a non-current asset to be overestimated or…

A: Depreciation is charged for non current asset being tangible asset, because of its wearing and tear…

Q: How does straight-line depreciation work? What about descending?

A: Depreciation - Depreciation means wear and tear of the assets owned by the company. Depreciation is…

Q: Do you think a company like Target would have significant research anddevelopment costs or…

A:

Q: How does the company can benefit indirectly by leasing assets rather than buying?

A: Company can take benefit of leasing assets rather than buying assets due to many reasons: Leasing…

Q: Can the selection of a depreciation method affect a company’s asset replacement policy (i.e., the…

A: 1. Depreciation Expenses - Depreciation Expenses are the expense incurred on the wear and tear of…

Q: Why would a company choose to depreciate one piece of equipment using the double-declining-balance…

A: Depreciation is a decline in the value of the assets due to day-to-day working and wear and tear…

Q: What industry would most likely use the straight-line and units of activity depreciation methods and…

A: Depreciation seems to be the systematic distribution of an asset's cost throughout its service life.…

Q: Answer the following questions in depth .... Why do accountants have to classify items as capital…

A: Disclaimer: “Since you have asked multiple questions, we will solve the first question for you. If…

Q: What is the DuPont method of analysis and how does it break down return on assets

A: Given : This question tells about the DuPont method of analysis and how does it break down return on…

Q: What is meant by straight line method if charging depreciation?

A: Depreciation: Depreciation refers to the reduction in the monetary value of a fixed asset due to its…

Q: What is the difference between depreciation expense and accumulated depreciation?

A: “Hey, since there are multiple questions posted, we will answer first question. If you want any…

Q: Why would companies choose one method of accounting for Depreciation over another method?  What are…

A: Most companies choose one method of accounting over another method on the basis of the accounting…

Q: What is depreciation? Why are depreciation methods important in the business arena?  Explain the…

A: Depreciation is the loss in the value of the asset caused due to its usage, wear and tear. There are…

Q: How do you know the ratesw on straight line depreciation?

A: Solution:- The following way to find depreciation rates on straight line depreciation method as…

Q: What negative consequences result when fixed asset records include assets that the firm no longer…

A: Assets that were purchased for long-term use in the organization is called fixed assets, they also…

Q: Why would a company use accelerated depreciation instead of straight-line depreciation

A: The depreciation expense is charged on fixed assets as reduction is value of the fixed assets with…

Q: Can depreciation be a profit management tool for the enterprise? Please explain with reason.

A: Definition: Depreciation:  Depreciation means fall in the value of an asset, its a process of…

Q: What are the advantages of using the Dupont System to analyze the Return on Assets

A: Dupont analysis is one that helps the firm to analyze the fundamental performance of the firm. It is…

Q: Explain why most companies use the straight-line method, despite the benefits of accelerated…

A: Accelerated depreciation is a type of method of depreciation in which an asset's book value…

Q: When do the depreciation expenses lose some of their value? Why?

A: Depreciation is a process in the decrease in the value of an asset. A reduction in the value over a…