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The difference between cost and book value has been expired so far. The book value is the maximum amount that can expire in future periods. (The machine may have a residual value or be sold before its value is 0.)
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∙ 13y ago
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Is inventory an example of expired cost?
yes
Is accounts receivable a liability?
included in the cost of a plant assets
What is the main purpose of charging depreciation?
the expired cost of fixed plant assets such as land, building, equipment, furniture and fixtures and automobile etc.., after a year is known as depreciation. it means that if you depreciate the value of any fixed assets you will be able to estimate its life for the future use..it can help you to estimate the total revenue earned by using that assets.
The process of allocating the cost of plant assets to expense over their useful lives is called-?
Depreciation
Why is a plant asset recorded at cost?
Plant assets are long-lived assets acquired for use in the business and not for resale to customers. The matching principle of accounting requires that we include in the plant and equipment accounts those costs that will provide services over a period of years. During these years, the use of the plant assets contributes to the earning of revenues. The cost of a plant asset includes all expenditures reasonable and necessary in acquiring the asset and placing it in a position and condition for use in the operations of the business.
What is the difference between cost and expenditure?
Costs can be unexpired or expired. Unexpired costs are assets which will be used up or consumed (either in the current period or in the future) in the production of revenue. Expired costs are expenses. They represent assets that have been used up during a period in the generation of revenues.
What is the different between expired cost and unexpired cost?
expired cost - benefit has been received unexpired cost- benefit may or may not be received
What is the difference between expired cost and unexpired cost?
expired cost - benefit has been received unexpired cost- benefit may or may not be received
In a firm where assets are the major cost how is profit maximized?
By increasing revenues or the cost of the assets.
Depreciation on plant and assets?
Plant and assets are those items which is usable in business for more than one fiscal year to generate revenue for business that's why depreciation is charged to allocate the specific portion of cost related to one fiscal year through income statement.
What are proceeds from disposal of assets?
Proceeds from disposal of assets is equal to = Total cost of disposed assets- Accumulated depreciation related to assets disposed+ Profit on sale of fixed assets
What is the ticket cost for expired tags in ct?
$158
