Distinguish between revenue and capital expenditures

Assignment Help Business Management
Reference no: EM13990601

Property, plant and Equipment (plant assets) generally represent a material portion of the total assets of most companies. Accounting for the acquisition and usage of such assets is therefore an important part of the financial reporting process.

Required

a. Distinguish between revenue and capital expenditures, and explain why this distinction is important.

b. briefly define depreciation as used in accounting.

c. Indentify the factors that are relevant in determining the annual depreciation, and explain whether these factors are determined objectively or whether they are based on judgment.

d. Explain why depreciation is shown as an adjustment to cash in the operations section on the statement of cash flow.

Reference no: EM13990601

Questions Cloud

A firm that has total fixed costs sells : If the firm's cost and revenue curves are linear, how much output must the firm produce to break even?
How high does it reach above the deck : A rock is thrown straight up with an initial velocity of (5.0 m/s)i + (10 m/s)j from a deck that is 25.0 m above the ground. how high does it reach above the deck? At its maximum height how far has it moved horizontally (i.e. in the i direction)?
What is the experimental frictional torque of the system : If the radius of the aluminum hub is 0.0150 m and its mass Is 0.0889 kg, and the radius of the disk Is 0.125 m and the mass of the disk is 0.8000 kg, then what is the theoretical moment of inertia of the combined disk/hub system? What is % differe..
What is a major concern related to the use of hiv : For an HIV vaccine to be effective, it almost certainly will have to be a live attenuated virus. What is a major concern related to the use of this type of vaccine for HIV?
Distinguish between revenue and capital expenditures : Indentify the factors that are relevant in determining the annual depreciation, and explain whether these factors are determined objectively or whether they are based on judgment.
Find the coordinates of the vertex : Find the coordinates of the vertex and indicate whether it corresponds to the maximum or the minimum of f.
Series of company liquidations and the three-period : (a) Use Excel to compute both a three-period and a five-period moving average time series of company liquidations. (b) Plot the original time series of company liquidations and the three-period and five-period moving average values on the same grap..
What advice would you give cecilia about the number : What are the benefits and costs of using price data from only the previous 90 trading days? What advice would you give Cecilia about the number of data points to use?
Compute the trendline equation for annual advertising : (a) Use the least squares regression to calculate the trendline equation for advertising expenditure in the financial services sector. (b) Predict the level of advertising expenditure for the sector for 2012. (c) Use Excel to plot a line graph of a..

Reviews

Write a Review

Business Management Questions & Answers

  Question related to reorder point

Sarah wishes to establish a reorder point system to manage inventory of this standard muffler.

  Explain online vide and twitering are five technologies

Explain blogging, Podcasting, online photo sharing, online vide and twitering are five technologies that are enabling a much broader set of content publishers and content users

  Enhance self esteem in the workplace

How might you deal with an employee who displays a poor self-esteem and must be at least 200 words Explain

  Why you propose product for an individual marketing plan

description of the product, a brief strategic mission statement (mission, vision and values of the company) and explain why you propose the product for an individual marketing plan?

  Prepare a plan for art hill that gets the firm

1. Prepare a plan for Art Hill that gets the firm back on a course toward improved profitability. Be sure to identify the symptoms, the problems, and the specific changes you would implement.

  Unionlabor collective bargaining - arbitration1 state how

unionlabor collective bargaining - arbitration1. state how production standards place managements and unions at odds

  What would you say to this student to try to convince him

You are talking with another student who is complaining about having to learn the systems development life cycle because he or she is not going to work in an IT department. Would you agree with this student? What would you say to this student to try ..

  Describe primary research and secondary research

Describe the difference between primary research and secondary research and how each is used in gathering information for research.

  Linear decision makingdefine linear desion making and

linear decision makingdefine linear desion making and provide an example from personal experiences. linear decision

  The goals of a successful training guide

Training guide - Your management team has been retained by a senior manager who is concerned about the effectiveness of his managers and their teams.

  Management process at starbucks involving challenges

Management process at Starbucks involving challenges and outcomes that the management could face in controlling change such as job losses and customer experience; how changes were resolved and the impact they created and alternative actions. Another ..

  Health care management explained in this answerdetails

health care management explained in this answerdetails jones pediatric services provides oncology services for children

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd