0
What else can I help you with?
What is the effect on wrong treated revenue expenditure as capital expenditure?
The effects it would has on net profit and net asset is that there would be an increase in net profit and an increase in net asset as well
What is the effect on wrong treated capital expenditure as revenue expenditure?
The effects it would has on net profit and net asset is that there would be an increase in net profit and an increase in net asset as well
Why profit does not increase net asset?
becoz as we use assets their value decreses due to wear and tear etc
Why does net asset value of a business not change when assets are purchased on credit?
The net asset value of a business remains unchanged when assets are purchased on credit because the increase in assets is offset by an equal increase in liabilities. When a business acquires an asset, it adds to its total assets, but it simultaneously incurs a liability equal to the purchase price, reflecting the obligation to pay for the asset in the future. Thus, the overall net assets, calculated as total assets minus total liabilities, remain the same.
Does depreciation increase total assets?
No, depreciation does not increase total assets; rather, it reduces the book value of tangible assets on the balance sheet over time. As an asset depreciates, its value is systematically expensed, which reflects the wear and tear or obsolescence of the asset. This reduction in asset value is matched by an increase in accumulated depreciation, but it does not affect the total assets figure. Overall, depreciation is an accounting method that allocates the cost of an asset over its useful life, leading to a decrease in the asset's net value.
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?
What does NAVS stand for?
NAV Stands for Net Asset Value
How is the net book value of a depreciable asset calculated?
The net book value of a depreciable asset is calculated by deducting the accumulated depreciation from the original cost of the asset. Accumulated depreciation is the total depreciation expense recorded over the life of the asset. This calculation allows for the determination of the asset's value at a specific point in time.
What is the net realization value?
Net realization value is the price a company can get on sale or dissposal of any asset from balance sheet.
What is the difference between net asset value and gross asset values?
Gross Versus Net ValueFair market value is the price an asset would bring if it were sold on a voluntary basis, meaning neither buyer nor seller has an obligation to make the exchange. Gross fair market value is the fair market value of an asset before allowing for any liabilities such as loans, taxes or liens. Suppose a warehouse has a gross fair market value of $250,000. If the property is collateral for a $100,000 business loan, the net fair market value of the asset becomes $150,000.
How do you calculate purchase consideration under net asset method?
under NET ASSET VALUE method all the ASSETS-LIABILITIES we need to calculate
Give me the example of net assets?
An example of a net asset value would be a mutual fund.
