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one example is if you have a computer monitor from the 1990s, then it has a negative value because there are disposal costs associated.
another example is debt which can make financial assets in negative value. This one is moreartificialbecause of its ties to the Fiat currency economic model that guarantees debt within' it's monetary actions.
What else can I help you with?
Can an asset be depreciated to the point where its value becomes negative?
That can never happen. An asset will either be depreciated to its salvage value, or to zero, depending on whether or not it has a salvage value.
When an asset is sold a gain occurs when the?
Gain on sale of asset is occured when actual value of asset is less then the sale value of asset.
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 Book value vs fair value?
Book value is the value of asset shown in financial statements while fair value is the value at which asset can be sold in market
Is the fair value of an asset retirement obligation recorded as an increase to the related asset and as a liability?
Is it true the fair value of an asset retirement obligation recorded as an increase to the related asset and as a liability?
Can an asset be depreciated to the point where its value becomes negative?
That can never happen. An asset will either be depreciated to its salvage value, or to zero, depending on whether or not it has a salvage value.
Is the word asset a negative word?
Most persons consider "asset" a positive rather than a negative word. This is always true in accounting, in which the negative of an asset is a liability or debt.
The book value of an asset is the same as market value of the asset?
Book value of an asset is the value which is shown in books of accounts while market value of asset is the value which is currently same asset is selling in market so both of these values are not same but it can be same but normally they are not same.
When an asset is sold a gain occurs when the?
Gain on sale of asset is occured when actual value of asset is less then the sale value of asset.
What is the concept of depreciation?
Negative depreciation, on the other hand, accounts for the opposite process of an asset gaining value over time.Increases in ValueSome assets do not decrease in value over time, so normal depreciation does not apply. If a business owns an asset that lasts more than one year and goes up in value, it can account for the appreciation using the negative depreciation method. In contrast with depreciation, negative depreciation adds value over time. For example, if an asset goes up in value by $1,000 every year, then a negative depreciation of the same amount every year would adjust the recorded value of the asset. ExamplesAssets that could go up in value include artwork, such as paintings and sculptures. An asset may also increase in value due to importation and currency exchange rate fluctuations. For example. if the importing country's currency drops in value relative to the exporting country's currency, the asset value increases. The importer would then record the asset value at cost and add negative depreciation to increase its recorded value.
What does it mean by positive beta in finance?
A positive beta means that the asset generally follows the market. A negative beta shows that the asset inversely follows the market; the asset generally decreases in value if the market goes up and vice versa.
How to find the salvage value of an asset?
To find the salvage value of an asset, subtract the estimated disposal costs from the asset's current market value. This value represents the amount the asset is expected to be worth at the end of its useful life.
What is the estimated salvage value of a fixed asset?
1. Estimated salvage value is the amount which is expected to be received from disposal of fully depreciated asset after useful life of asset.
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
Difference between book value and fair value in accounting?
Book value of asset is the value of asset shown in books of accounts while fair value of asset is the current price at which that product is selling or sellable in market.
The present value of the expected future cash flows of an asset represents the asset's?
intrinsic value
What is Book value vs fair value?
Book value is the value of asset shown in financial statements while fair value is the value at which asset can be sold in market
