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When determining whether to record an asset as a fixed asset what two criteria must be met?
Wiki User
∙ 12y ago
fixed assets or non-current assets are:
1. not consumable within one year
2. cannot be easily converted into cash
Wiki User
∙ 12y ago
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What factors do you take into account in determining the amount of depreciation?
You need to consider the useful life if the asset. The risidual income you expect to get from selling it on. And whether you are using straight line or reducing balance.
What does impairment of operational assets mean?
An operational asset is impaired when it suffers a permanent loss of benefits due to casualty, lack of demand for the asset or obsolescence. If a write-down due to impairment is required by determining whether the value of an asset has fallen below its book value. the asset will be reduced on the balance sheet and the loss is normally reported in the income statement as a separate item included in operating expenses.
What factors must be considered in determining the period of depreciation charged?
In determining the period of depreciation to be charged, one must consider the cost of the asset and its estimated salvage value. The usual life of the asset must also be considered together with its obsolescence.
How do you record goodwill on a balance sheet?
intangible asset
When determining the value of a fixed Asset and a rebate was given do you reduce the value of the the fixed asset or book at a true cost?
If the company are using cost basis to value their assets then the rebate will reduce the cost.
What factors do you take into account in determining the amount of depreciation?
You need to consider the useful life if the asset. The risidual income you expect to get from selling it on. And whether you are using straight line or reducing balance.
How do you account for an asset at the end of the year that you have purchased in cash but is still in court's custody and not in your company's custody?
The determining factor is the ownership, not the custody of the asset. You account for it as an asset in your books.
How to record a new roof in Quickbooks?
Record the entire expenditure as a Fixed Asset. Then use the Fixed Asset Manager to amortize the expense.
What does impairment of operational assets mean?
An operational asset is impaired when it suffers a permanent loss of benefits due to casualty, lack of demand for the asset or obsolescence. If a write-down due to impairment is required by determining whether the value of an asset has fallen below its book value. the asset will be reduced on the balance sheet and the loss is normally reported in the income statement as a separate item included in operating expenses.
Where do you record drawings in the balance sheet?
asset
What factors must be considered in determining the period of depreciation charged?
In determining the period of depreciation to be charged, one must consider the cost of the asset and its estimated salvage value. The usual life of the asset must also be considered together with its obsolescence.
How do you record goodwill on a balance sheet?
intangible asset
What requirements must be met to record an asset?
there are three requirements: 1) the asset must be owned by the entity, 2) the asset must has a monetary value, and 3) the monetary value of the asset must be objectively measurable.
Why are you interested in cash flows rather than accounting profits in determining the value of an asset?
because that is what is being used
Is valuation of a financial asset based on concept of determining the present value of future cash flows?
How is the value of any asset whose value is based on expected future cash flows determined?
When determining the value of a fixed Asset and a rebate was given do you reduce the value of the the fixed asset or book at a true cost?
If the company are using cost basis to value their assets then the rebate will reduce the cost.
What is fix asset?
Fixed asset register record all information regarding purchases of fixed assets as well as depreciation and replacement information
