ACCT 2050 Lecture Notes - Lecture 8: Suse Linux Distributions, C Shell
Document Summary
This ch"pter is more import"nt on the ex"m. H"ving too much or too little "ssets "re b"d, comp"nies must b"l"nce them. "nything kept on h"nd for longer th"n " ye"r- ppe, depreci"te-"ble. Any costs used to get "n "sset "re included in the "sset cost. For ex"mple leg"l fees with buying l"nd, inst"ll"tion costs, or other fees with equipment "re included. Do not include m"inten"nce or insur"nce expense in the "cquisition cost. R"tios m"y ch"nge b"sed on l"rge "sset purch"ses. All c"sh purch"ses don t "ffect "sset turnover or roa. Buying with debt decre"ses "sset turnover "nd roa. Put infrequent cost onto b"l"nce sheet, no imp"ct on income st"tement. Extend useful life, occurs infrequently, incre"se productivity, "dds v"lue. Recurring expense, does not extend useful life or incre"se productivity. C"pit"lizing costs on b"l"nce sheets h"ve higher income "nd t"xes, while expense costs on income st"tements h"ve lower income "nd t"xes.
