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What is difference between expendable and non expendable assets?
Any asset with the useful life of one or more than one year is Non-Expendable asset. Any asset with the useful life of less than one year is Expendable asset.
Why do amount for vehicle appear under non current asset and current asset?
Because it's a fixed asset
What is a cost of an asset minus the accumulated depreciation is?
There are a number of names for this figure,Book valueCarrying amount Essentially, it is the amount that your asset is recorded in your books as.
Does depreciation reduce the amount at which fixed assets are shown in the balance sheet?
Depreciatoin is that amount which is already utilized in business and that's why it is deducted from cost of asset to show that how much asset amount can be allocated in future.
What is the differences between impairment and depreciation?
Depreciation means the depreciable amount of an asset (cost/revalued amount less residual value) is allocated on a systematic basis over its useful life.Depreciation = Depreciable amount / Useful lifeImpairment means when an asset/s carrying amount is exceeds its recoverable amount, the amount over recoverable amount should be write off from carrying amount and present in Balance Sheet. This process is call as ImpairmentAn impairment (loss) is the amount by which the carrying amount (i.e. balance sheet value) of an asset or cash-generating unit exceeds its recoverable amount.Impairment = Carrying value - Recoverable amountIf there is any indication that an asset may be impaired, the entity should estimate its recoverable amount. If the recoverable amount is less than the carrying amount, the carrying amount of the asset should be reduced to the recoverable amount.
Is loaned cash an asset?
Yes, it is a current asset as part of the cash at bank. It also creates a liability for the amount of the loan.
Is dividends Payable an asset?
Dividend payable is the amount which is payable by the company to share holders so it is a liability of company and not an asset.
Why do amount of vehicles appear in non-current assets and current assets?
Vehicle is a fixed asset so it should be shown in fixed asset list and not in current asset list.
What will increase one asset and decrease another asset with no effect on liability or owner s equity?
Purchase an asset on cash will increase the purchased asset while reduce the cash amount and no impact on liability or equity section.
What the mean of impairment of the assetsplease example?
impairment loss f an asset is the reduction in the income generating ability of that asset. it is calculated as: carrying value less recoverable amount. -carryibg value is the cost less accumulated depreciation -recoverable amount is the higher amount between the net selling price of an asset and its value in use.
Is accounts receivable a asset or liability?
Accounts receivable is that amount which is receivable from debtors at future date that's why it is current asset of business.
Is it true that the original cost of a plant asset includes only the amount paid the vendor for the plant asset?
It is the amount of time it takes for you to cause an erect plant to ejaculate. You do not count the time where the plant is flaccid. You begin counting the cost of the asset once it has become erect.
