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What method of amortization is normally used for intangible assets?
Wiki User
∙ 13y ago
Straight-line
Wiki User
∙ 13y ago
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How amortization treated in the cash flow statement?
Amortization is added back like depreciation in net income while making cash flow statement from indirect method.
Is the straight-line amortization or effective interest rate method better?
This method is preferred over the straight-line method of amortizing bond discount or bond premium. Amortization of a bond discount or premium is the difference between the interest expense and the nominal interest payment. The amortization entry is: Interest Expense (effective interest rate x carrying value) Cash (nominal interest rate x face value) Bond Discount (for the difference)
When effective interest method is used to amortize bond premium or discount the periodic amortization will be?
increasse if the bonds were issued at either a discount or premium.
How do you calculate purchase consideration under net asset method?
under NET ASSET VALUE method all the ASSETS-LIABILITIES we need to calculate
What are the several categories on non current assets and the method of accounting for each categories?
Non-current assets are those that a company intends to keep longer than 12 months. These include investments and fixed assets. Investments include items such as trading securities, avaialable-for-sale securities, and held-to-maturity securities. Fixed assets includes items such as buidlings, land, and equipment
What is amortization?
Amortization Means:-1. The paying off of debt in regular installments over a period of time.2. The deduction of capital expenses over a specific period of time (usually over the asset's life). More specifically, this method measures the consumption of the value of intangible assets, such as a patent or a copyright.
How amortization treated in the cash flow statement?
Amortization is added back like depreciation in net income while making cash flow statement from indirect method.
What is the meaning of loan amortization?
Amortization is A method for repaying a loan in equal installments. Part of each payment goes toward interest and any remainder is used to reduce the principal of the loan
Is the straight-line amortization or effective interest rate method better?
This method is preferred over the straight-line method of amortizing bond discount or bond premium. Amortization of a bond discount or premium is the difference between the interest expense and the nominal interest payment. The amortization entry is: Interest Expense (effective interest rate x carrying value) Cash (nominal interest rate x face value) Bond Discount (for the difference)
How you can combine liability structure and current assets decision?
The level of current assets and method of financing those assets are interdependent.A conservative policy of "high" level of current assets allows a more aggressive method of financing current assets.A conservation method of financing ( all- equity) allows an aggressive policy of "low" levels of current assets.
When effective interest method is used to amortize bond premium or discount the periodic amortization will be?
increasse if the bonds were issued at either a discount or premium.
Why FIFO should or should not be an acceptable method of valuing current assets?
Current assets are always valued at current market values so if assets purchased is used a FIFO method then historical costs would be shown in balance sheet which may be change drastically and which presents not accurate information.
How does the partial equity method differ from the equity method?
The equity method of accounting recognizes income of the investee company as an increase to the investment account by the percentage owned. Dividends received decrease the investment account, again, by the percentage apportioned. ALSO, for any assets that have been appraised at fair value above their book value, the investment account is reduced by the excess depreciation or amortization from these increased values.Under the partial equity method, however, the acquirer ignores the effects of the excess depreciation on the investment account. Therefore, the only items that change the investment account would be income earned by the subsidiary and dividends paid.
What is a negative amortization loan?
In finance, negative amortization, also known as NegAmMort, is an amortization method in which the borrower pays back less than the full amount of interest owed to the lender each month. The shorted amount is then added to the total amount owed to the lender. Such a practice would have to be agreed upon before shorting the payment so as to avoid default on payment. Also known as deferred interest or Graduated Payment Mortgage (GPM).
Which method in resolving conflict is normally the most effective least divisive and the perferred method is?
mediation
How do you calculate purchase consideration under net asset method?
under NET ASSET VALUE method all the ASSETS-LIABILITIES we need to calculate
Which method in resolving conflict is normally the effective least divisive and the preferred method of reaching agreements?
Mediation
