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Is accounts receivable a liability?
included in the cost of a plant assets
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.
How will you calculate cost of fixed assets?
Cost of fixed assets includes the cost of asset as well as all costs which are incurred to bring asset to working condition like carriage and installation cost as well.
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.
Is a deferred loan cost an intangible assets?
YES
Is accounts receivable a liability?
included in the cost of a plant 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.
Are plant assets an example of expired cost?
Answer:No. Plant assets are an example of unexpired costs. As the plant is used over its economic lifetime, the cost of the plant expires which is called depreciation expense. 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.)
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 types of cost?
assets liablities revenue cost of goods expenses
How will you calculate cost of fixed assets?
Cost of fixed assets includes the cost of asset as well as all costs which are incurred to bring asset to working condition like carriage and installation cost as well.
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.
Is a deferred loan cost an intangible assets?
YES
What is intangible cost?
intqngible assets whats is cost for licensed, bonds insurances etc?
