Changes in depreciation accounting ethical

Assignment Help HR Management

Reference no: EM13817700

You are the owner of a successful small business. You have just finished a year of large capital investments using borrowed funds. Your banker requires quarterly financial statements to monitor the financial health of your company. The banker has warned you that if profit margins decline she may have to increase interest rates on the loans you have with the bank to reflect increased loan risk from the banker's perspective. You fear profit margins have declined and decide to add all repairs and maintenance expenditures to the value of the assets on the Balance Sheet. You also decide to switch to straight line depreciation for all of your medium term assets instead of the declining balance method you have been using.

Are your changes in depreciation accounting ethical or legitimate depreciation assumptions?
What will be the effects on the Balance Sheet, Income Statement, and profit margins of your actions?
How does a switch from declining balance to straight line depreciation affect the depreciation amount and the income statement?

Reference no: EM13817700

Questions Cloud

Social change is integral to mission of walden university : Social change is integral to the mission of Walden University

Uses of fossil fuels and renewable energy resources : Discuss the scientific and technical concepts related to the uses of fossil fuels and renewable energy resources. Consider how fossil fuels such as coal, oil, and natural gas are utilized for production of electricity

Free of material misstatements : Does an auditor have responsibility for providing absolute assurance that the financial statements of the company audited are free of material misstatements? If not, why not? Elaborate.

Risk management plan including contingency plans : Write a draft of no more than 1,800 words of the strategic plan for your organization, including the following

Changes in depreciation accounting ethical : Are your changes in depreciation accounting ethical or legitimate depreciation assumptions? What will be the effects on the Balance Sheet, Income Statement, and profit margins of your actions?

Research five different hybrid cars : In this assignment, you will research five different hybrid cars and evaluate their impact on the environment. Identify the top five most popular choices of hybrid cars. Analyze the advantages and disadvantages of each car's technology, price, manu..

Why do companies prepare business plan : Why do companies prepare business plan - Have you ever created or read about a business plan prior to this course?

Compares to regional and statewide scores : Compare your level of confidence at the time you completed Part I to your confidence level for Part II, when you used this decision aid. Was it helpful? What were its advantages and disadvantages?

Process costing-equivalent units-gagnon company : The Gagnon Manufacturing Company uses a process costing system for its three productiondepartments: Initiation, Assembly, and Finishing.

User Account

All Pages