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An example of using a loan to purchase an asset that increases in value over time is taking out a mortgage to buy a house.

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4mo ago

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Is software considered a fixed asset?

if software is purchased and price is paid at once and used for many years then it is fixed asset but if you purchase a software and after that every year you need to renew the license of using that software then this lisence cost is current asset and price paid for purchasing software is fixed asset. For Example: software purchased for $1000 and lisence renew fee for every year is $100 then $1000 is fixed asset and $100 is current asset or revenue asset.


When government increases its purchase of goods it is using which power?

Fiscal Policy.


What is a non-productive asset?

it is a type of asset which does not produce any output.. for example TV is non-productive asset if you use it for home viewing only but it may become productive asset if you start using it to make money, like for example in african villages where the owner charges fees for viewing the movies..


What is a non productive asset?

it is a type of asset which does not produce any output.. for example TV is non-productive asset if you use it for home viewing only but it may become productive asset if you start using it to make money, like for example in african villages where the owner charges fees for viewing the movies..


Is it illegal to secure multiple loans from different banks using one asset?

Yes, if the value of the loans exceed that of the asset being used for security. For example, if you secure loans using your investment account and you have $200,000 in securities within that account, it is NOT illegal to secure four loans of $50,000 with that asset because the asset is large enough to provide the backstop for the loans. However, if you secure four loans of $100,000 using the $200,000 asset, you are committing fraud (because you knowingly misrepresent the claims on the asset).


How do you get things from the unity3d asset store?

It's an online store. You purchase the items you require using a credit card or other online payment system.


What is a sentence using the word asset?

To a business, cash is always an asset.


When is an asset not an asset?

There are many things which could be considered an asset to a company that are not reflected on the company's Balance Shhet as an asset. For example: qualified, competent employees; reputation; the ability to be innovative; superior policies and procedures; excellent management, etc. Also, a business could be using assets which are not listed on their balance sheet such as leased property or equipment.


What does it mean to borrow against an asset?

Borrowing against an asset means using the value of that asset as collateral to obtain a loan. This allows the borrower to access funds based on the asset's worth, with the understanding that if the loan is not repaid, the lender can take possession of the asset.


Why depreciation occur?

Depreciation is due to general wear and tear in the assets which we use in our business. As we use the assets in business that's why it's natural that assets should lose its value after few years of use and in the end we eventually discard the asset and purchase the new one so despite deducting the whole amount of asset value at the year of discarding the asset we gradually depreciate the value of asset by using different depreciation methods to allocate the cost of asset to the whole life of the business under which that asset was used.Depreciation can be due to obsolescence or changes in market or effluxion of time besides wear and tear.


What is the meaning of hypothecation charge?

A hypothecation charge refers to using an asset as collateral for a loan without transferring ownership of the asset. The lender has a claim on the asset in case the borrower defaults on the loan.


What is money for investment?

Using money or capital to buy an asset with the hope that the value of that asset will increase and give you the opportunity to sell at a profit.