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What are the differences among valuation, depreciation, amortization, and depletion? Is it appropriate to calculate depreciation using two different methods? Why?
Depreciation, Depletion and Amortization: Learning Objectives: What is the difference among depreciation, depletion, [ and amortization. Depreciation: The term depreciation is used with reference to tangible fixed assets because the permanent continuing and gradual fall in book value is possible only in the case of fixed asset. Depletion: The term depletion is used for the depreciation of
wasting assets such as mines, oil wells, timber trees etc. Amortization The term amortization is used in respect of intangible assets like patents, copyrights, leasehold and goodwill which are recorded at cost. Some intangible assets have limited useful life and are, therefore, written off. The process of their writing off is called amortization. ]
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Asked 2/8/2012 5:53:28 PM
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What happens to your customers if you do not offer credit? Is there an advantage to doing it? If so, what?
Weegy: If they are not really helped by the service that we gave them, we should give our customers credit if they are asking for it . Not giving credit when customer is asking for it might send a negative feedback to the company. [ The advantage of giving credit is to make the company truthful and efficient with the service that they offer to the public. ] (More)
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Asked 2/2/2012 6:13:31 AM
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How do we estimate how much we have to record to account for the fact that some client will not end up paying? What would happen to our business if we stopped offering credit and everything became cash and carry
Weegy: just estimate on how much you can give to your client or how much do you think the client can pay. according to his/her capacity to pay. if you stop offering credit your business get slow,because all people want credit. (More)
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Asked 2/2/2012 6:49:41 AM
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the standard, but what is the rule for right offs? How does this affect the direct write off method
Weegy: The term write-off describes a reduction in recognized value. In accounting terminology, it refers to recognition of the reduced or zero value of an asset. [ In income tax statements, it refers to a reduction of taxable income as recognition of certain expenses required to produce the income. Write-off is also used in vehicle insurance to describe a vehicle which is cheaper to replace than to repair, sometimes colloquially referred to as being "totaled" (a total loss). ] (More)
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Asked 2/3/2012 4:31:36 AM
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Which depreciation method provides you the highest depreciation expense in the first year? Why?
Weegy: Accelerated method or double declining method of depreciation provides relatively large amounts of depreciation in the early years of use and correspondinly reduced amount in the later years. *Why? Due to increasingly pace of invention of new [ products is making obsolescence factor of much greater than physical deterioration. [smile] ] (More)
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Asked 2/8/2012 6:06:23 PM
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