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because we get the benifit of such expenses in future
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∙ 12y ago
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How to Compute Net Assets Value?
Net assets are calculated as: Fixed Assets+Current Assets-Current Liabilities-Preliminary expenses if any
Where do you place goodwill in a balance sheet?
On the Asset side after Current Assets & Fixed Assets. It forms part of OTHER NON - CURRENT ASSETS as,Intangible Assets (patents, good will, preliminary Expenses, bad / doubtful debts not provided for, etc.
Is preliminary expenses is a administrative expenses or selling expenses?
Preliminary expenses are neither administrative expenses nor selling expenses rather these are classified as other assets in balance sheet and amortized over period of life of business.
How do you treate preliminary expenses?
Preliminary expenses are those expenses which incurred before start of actual operations so these are assets of business and shown in asset side of balance sheet as other assets and then amortized over period of time through income statement.
Which intangible assets amortized over their useful life?
Following are the intangible assets amortized: 1 - Patents 2 - Goodwill 3 - Preliminary Expenses etc.
How to Compute Net Assets Value?
Net assets are calculated as: Fixed Assets+Current Assets-Current Liabilities-Preliminary expenses if any
What kind of asset preliminary expenses?
Preliminary expenses are expenses prior to start of operating activity and shown in assets side as an other assets.
Where do you place goodwill in a balance sheet?
On the Asset side after Current Assets & Fixed Assets. It forms part of OTHER NON - CURRENT ASSETS as,Intangible Assets (patents, good will, preliminary Expenses, bad / doubtful debts not provided for, etc.
Is preliminary expenses is a administrative expenses or selling expenses?
Preliminary expenses are neither administrative expenses nor selling expenses rather these are classified as other assets in balance sheet and amortized over period of life of business.
How do you treate preliminary expenses?
Preliminary expenses are those expenses which incurred before start of actual operations so these are assets of business and shown in asset side of balance sheet as other assets and then amortized over period of time through income statement.
Which intangible assets amortized over their useful life?
Following are the intangible assets amortized: 1 - Patents 2 - Goodwill 3 - Preliminary Expenses etc.
How do you catagorize the pre-operative expenses?
Pre operative expenses are categorized as preliminary expenses and shown as other assets in balance sheet and amortized over period.
Depreciation on Fixed Asset is a operating expenses or not?
Depreciation on Fixed Asset (Furniture, Building) are considered as Non-Current Assets
Is expenses owing a current liability or a current asset?
expense owing is a current asset
When assets are withdrawn from a business by the owners is it considered to be expenses?
cash
What's the relationship between current liabilities and current assets?
Solvency. A company is considered solvent if it's current assets exceed it's current liabilities. A company is considered to be insolvent if their current liabilities exceed their current assets.
Are patents considered current assets?
no
