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Conservatism If a situation arises where there are two acceptable alternatives for reporting an item, conservatism directs the accountant to choose the alternative that will result in less net income and/or less asset amount. Conservatism helps the accountant to "break a tie." It does not direct Accountants to be conservative. Accountants are expected to be unbiased and objective.
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What is revaluation of plant assets?
A plant asset is an asset such as land, buildings, and machinery that will be useful for more than one year and is used to help produce revenues for a business. Plant assets are also known as fixed assets. Revaluation of plant/fixed assets is the process of increasing or decreasing their carrying value in the event of major changes in the fair market value of the assets.
Is plant asset and current assets the same?
NO
Why do assets lose value?
Some assets lose its value like plant and machinery as they lose its power and they are known as fixed assets
What are the advantage on historical cost accounting?
The main advantage of using historical cost on the balance sheet for property, plant and equipment is that historical cost can be verified. Generally, the cost at the time of purchase is documented with contracts, invoices, payments, transfer taxes, and so on.The historical cost of plant and equipment (not land) is also used to determine the amount of depreciation expense reported on the income statement. The accumulated amount of depreciation is also reported as a deduction from the assets' historical costs reported on the balance sheet. (In the case of impairment, some assets might be reported at less than the amounts based on historical cost.)The use of historical cost is also a disadvantage to those users of the financial statements who want to know the current values.
Is accounts receivable a liability?
included in the cost of a plant assets
What is the main distinction between inventory and plant assets?
In accounting, inventory is considered a "for sale" asset, plant assets are not.
What is revaluation of plant assets?
A plant asset is an asset such as land, buildings, and machinery that will be useful for more than one year and is used to help produce revenues for a business. Plant assets are also known as fixed assets. Revaluation of plant/fixed assets is the process of increasing or decreasing their carrying value in the event of major changes in the fair market value of the assets.
Who was the buyer of equipment from auction at Delphi Wichita Falls plant?
The buyer of equipment from the auction at the Delphi Wichita Falls plant was a company called "Gordon Brothers," a financial services firm specializing in asset valuation and disposition. They acquired the assets as part of the liquidation process following Delphi's bankruptcy and restructuring efforts. The auction included various manufacturing equipment and machinery that had been used in the plant's operations.
Is plant asset and current assets the same?
NO
What is the real asset?
Plant Assets are included in this.
Why do assets lose value?
Some assets lose its value like plant and machinery as they lose its power and they are known as fixed assets
Difference between real assets and financial assets?
Real assets are physical assets such as plant, machinary, vehicles, stock/ inventory. Financial assets, are cash, bonds, shares etc., etc.
In a classified balance sheet assets are usually classified as?
current assets; long-term investments; property, plant, and equipment; and intangible assets.
What are the four main problems with plant assets?
Depreciation: Plant assets lose value over time due to wear and tear, obsolescence, or other factors. Maintenance costs: Regular maintenance and repairs are necessary to keep plant assets operating efficiently. Risk of theft or damage: Plant assets can be stolen or damaged, leading to financial losses. Compliance with regulations: Plant assets must adhere to strict regulations regarding safety, environmental impact, and other legal requirements.
What is objective of assets?
Objective of assets is to utilized them for earning revenue for business like plant and machinery etc.
What are the advantage on historical cost accounting?
The main advantage of using historical cost on the balance sheet for property, plant and equipment is that historical cost can be verified. Generally, the cost at the time of purchase is documented with contracts, invoices, payments, transfer taxes, and so on.The historical cost of plant and equipment (not land) is also used to determine the amount of depreciation expense reported on the income statement. The accumulated amount of depreciation is also reported as a deduction from the assets' historical costs reported on the balance sheet. (In the case of impairment, some assets might be reported at less than the amounts based on historical cost.)The use of historical cost is also a disadvantage to those users of the financial statements who want to know the current values.
Is accounts receivable a liability?
included in the cost of a plant assets
