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It is an Asset which has nominal value or has lost its value due to depreciation or wear and tare or redundency of the asset.
If a Vehicle is completely out of function, without an engine and has no market value, it can be called an obsolete asset.
aditional: it can also be an asset with for example a 5 year depreciation schedule that for technical reasons has become useless to the operation at the end of three years due to technical advances, lack of support due to the vendor going under or other special cases. Depends on the business format and the tax code.
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What does the term finance lease mean?
The Term "Finance Lease" means that the customer will pick an asset such as a vehicle and the lender will purchase the asset. The customer will be able to use the asset while they pay installments or rental fees, with the option to purchase the asset.
What does replacement cost theory means?
Replacement cost theory means the amount it would cost to replace an asset at current prices. If the cost of replacing an asset in its current physical condition is lower than the cost of replacing the asset so as to obtain the level of services enjoyed when the asset was bought, then the asset is in poor condition and the firm would probably not want to replace it...In short the theory basically argues that old companies should be valued on the basis of the amount of money which would be required to create another such company...
What is a asset?
a asset means the properties of every description belonging to the trade or the valuable things owned by a business concern. Ex: cash, goods, buildings, machinery, etc., By-Nalini & Raje
Is cash vault a financial asset or a real asset?
real asset real asset
is this true Residual value means the actual cash one receives at end of life of asset?
Residual value is the value of the asset that they are likely to recover at the end of the life of the asset. It is the value that is expected to be at the end. But its not necessarily that we realise the amount at the end of the period. It can be more or less than that.
Is there any difference between absolete asset and assets at written down value?
Obsolete asset is that asset which suddenly becomes obsolete due to any technological change or any reason and has no value while written down asset is asset which is usable asset with written down value
What is a word starting with ob that means out of date?
obsolete
What is Asset Reconciliation?
Asset Reconcilation means reconcilation of asset, verifying the asset with the available cash.
What is obsolete data?
Obsolete means old, superseded, out-of-date. Obsolete data is data that is not relevant to the present because it is old.
Why do you write off assets?
Assets are write off if asset has completed it's useful life or can be disposed of if it has become obsolete or another reason is that if company wants to purchase asset with new technology as well.
What is the General journal entry to write off obsolete assets?
debit accumulated depreciationdebit loss on assetcredit fixed asset account
What word means worthless component?
Obsolete
Why is an obsolete adhesive not in use anymore?
Being 'obsolete' means that something better has been found to replace it.
The opposite of obsolete?
well, obsolete means out of date, so the best i can think of is up to date or current.
Why is an obsolete adhesive not in use any more?
Because it's obsolete. Obsolete means that people have made something better and no longer need the first version.
What is difference between fixed asset and non current asset in detail?
assests means
What decreases an asset and liability?
Decrease in asset means being using of it decreases and liability decrease means payable of debts decreases.
