No definitive value can possibly exist until sold. What is the informational benefit of a number that is so subjective? Additionally, the asset’s value might change radically on a daily basis rendering previous assessments useless. For that reason, historical cost, as adjusted for accumulated depreciation, remains the accepted method for reporting property and equipment on an organization’s balance sheet. This use of historical cost is supported by the going concern assumption that has long existed as part of the foundation for financial accounting. In simple terms, a long life is anticipated for virtually all organizations. Officials expect operations to continue for the years required to fulfill the goals that provide the basis for their decisions. They do not plan to sell property and equipment prematurely but rather to utilize these assets for their entire lives. Consequently, financial statements are constructed assuming the organization will function until all of its assets are consumed. Unless impaired or a sale is anticipated in the near future, the fair value of property and equipment is not truly of significance to the operations of a business. It might be interesting information but it is not actually of much importance if no sale is contemplated.
payday loan no fee
online loan 3000
online payday loans san antonio tx
utah payday loan regulations
quick loan
quick and fast loans
bad credit loan online
online payday loan lenders ohio
online payday loans new jersey
cash loans in az
payday loans ocala florida
cash loan express
the best pay day loans
i need 5000 dollars fast
loan up
ways make quick cash online
online installment loan
legit loans for bad credit
quick online cash loans
payday loans federal way washington
payday loan settlement north carolina
unsecured bad credit personal loan
make cash online fast
payday loans san diego washington st
cash loans houston texas
cash loan New Jersey
online loan origination software
apply for loan online
payday loan america
payday loans seaford delaware
Businesses hold numerous types of assets, such as receivables, inventory, cash, investments, and patents. Proper classification is important for the clarity of the reported information.What requirements must be met for an asset to be classified as part of a business’s property and equipment? Answer: To be included within the property and equipment category, an asset must first have tangible physical substance and be expected to be used for longer than a single year. Furthermore, it must serve to generate revenues within the normal operating activities of the business. It cannot be held for immediate resale, like inventory. A building used as a warehouse and machinery operated in the production of inventory both meet these characteristics. Other examples include computers, furniture, fixtures, and equipment. Conversely, land acquired as a future plant site and a building held for speculative purposes are both classified with investments (or, possibly, “other assets”) on the owner’s balance sheet rather than as property and equipment. Neither is used at the current time to help generate operating revenues.
cash loans jackson tn
cash 1 loans south virginia street reno nv
us money direct cash loan
payday loan portland oregon
cash loans in arizona for bad credit
fast loan inc
cash loan places in illinois
payday loans online bad credit ok
payday loan florida regulation
payday loan repayment plan illinois
payday loans missouri city texas
cash loans caldwell idaho
payday loans in murfreesboro tn
online payday loan dallas tx
loans for bad credit in michigan
payday loan palestine tx
cash loan no bank account
quick cash gigs
payday loan new hampshire
safe payday loans



Payday Loans

© 2015 All rights reserved.

Make a free websiteWebnode