Is it appropriate to calculate depreciation using two different methods? Why or why not? The accounting terms depletion and depreciation describe basically the same thing. Do you agree with this statement? Why or why not? Explain. Explain what Accumulated depreciation means. What does it mean to ...
What are the differences among valuation, depreciation, amortization, and depletion? Explain how to calculate the profit and loss statement. Explain how inventory is presented on a balance sheet? Also how do we value it on the balance sheet? ...
How to calculate depreciation using the units-of-activity method? Is depreciation considered a temporary account? Explain. Briefly explain the differences between the terms, depreciation, depletion, and amortization. Explain the following statement: "Depreciation is a process of allocation and not...
Many supply chain managers rely on inventory management software and built-in or complementary demand planning tools to calculate optimal safety stock levels and reduce the chances of having too much — or not enough — buffer inventory. Businesses can also centralize supply chain functions on anente...
How to calculate depreciation expense for cash flow statement? How does an increase in accrued expenses affect cash flow in the statement of cash flows? How does a decrease in prepaid expenses affect cash flow in the statement of cash flows? How does a decrease in accounts payable affect...
Who Should Calculate Average Inventory? The inventory manager, who may also be in charge ofstocktaking, is typically the one who calculates average inventory for larger businesses. A lot of smaller companies, however, lack the funding to hire an inventory manager. ...
Write a short paragraph to explain the concept of depreciation as used in accounting. Explain how to calculate and record depreciation expense under the units-of-activity method. 1. Describe the purpose of depreciation (or cost recovery) deductions. 2. Give an example ...
Cost basis can be adjusted downward by subtracting anycapitalized costsdirectly related to the asset. Common expenses that reduce an asset's cost basis includedepreciation, damage to the asset, or theft.Depletionoramortizationcan also be used to adjust the cost basis of an asset downward.1 ...
If you need to calculate the total monthly payment for any reason, the formula is as follows: Total Payment=Loan Amount×[i×(1+i)n(1+i)n−1]where:i=Monthly interest paymentn=Number of paymentsTotal Payment=Loan Amount×[(1+i)n−1i×(1+i)n]where:i=Monthly interest paymentn=...
To calculate this ratio, find the company’s earnings before interest and taxes (EBIT), then divide by the interest expense of long-term debts. Use pretax earnings because interest is tax-deductible; the full amount of earnings can eventually be used to pay interest. Again, higher numbers ar...