Depreciation Essay Topics

Training Phase

Depreciation, in accounting is the process of allocating in a systematic and rational manner the cost of a capital asset over the period of its useful life (Depreciation, 2006). Straight-line is a depreciation method in which the rate of depreciation is constant for the entire working life of the capital assets. Office equipment is an… View Article

Investment Banking Interview

Standard Questions: 1. Walk me through the highlights of your resume. What is your story, walk through the decisions you have made, and how that relates to your current interest in Investment Banking.. 2. Why investment banking? Why our bank? 3. How do you value a company? 4. To what extent have you created and… View Article

Why Profit Does Not Equal Cash

Why is profit not equal to cash coming in? Some differences such as loans received which do not impact the profit and loss statement are pretty obvious. Others may not be as obvious but you can break them down into three main areas: – Revenue is booked at sale. In many cases a sale is… View Article

Adjusting Entries – Examples

Let’s work with some examples. We are working with a one year accounting period that ends on 12/31/X2. Let’s use a three step process. Step 1 – Analyze the transaction. Step 2 – Record in the journal. Step 3 – Post to the ledger. Example 1: On 12/31/X2 (before the adjusting process), Supplies, an asset,… View Article

Depreciation and Cost

1. The primary cause of the current system to fail is the use of a single burden rate. Burden costs of the testing rooms as well as other costs such as admin were grouped into a single cost pool and then divided by the total labor dollars. This resulted to a single burden rate of… View Article

Pressco Case Study

In reviewing the proposal presented by Pressco, Inc. to provide new mechanical drying equipment at a cost of $2.9 million I have considered the cash flow implications of the purchase in terms of present value of the investment and estimated resulting savings, as well as possible alternatives to purchase, and the current political climate as… View Article

Groupe Ariel S.A.

Abstract Groupe Ariel is a company that manufactures and sells printers, copiers and other document production equipment. The case focuses on an investment project in the company’s Mexican subsidiary that would expand operations into a new market, something it been slow to do in the past. Groupe Ariel believes its products have better durability for… View Article

Ocean Carriers Case Study Solution

Executive Summary Given the current and expected market conditions, the financial department of the Ocean Carriers Group is to evaluate the potential revenues and expenses of commissioning a new capsize ship for cargo transportation in order to meet a received demand for lease. A recommended approach would consist in analyzing the expectations for the world… View Article

While evaluating Apollo Shoes

While evaluating Apollo Shoes, there are some areas of concern that are potential fraudschemes. The fraud can lead to the entire collapse/demise of the company if not corrected.These will also affect the share value and investor confidence. An overview of the process of investigation along with recommendations for the company.As with any company, revenue recognition… View Article

Interco Case

Interco On August 8, 1988, Interco’s board of directors met to discuss, among other matters, a merger proposal from City Capital Associates Limited Partnership. City Capital had offered $64 per common share of Interco on July 28, 1988, and had raised that offer to $70 per share on the morning of August 8. At this… View Article

Tax Issues

Prepare a three-page memo (at least 900-1,500 words per page) to John and Jane Smith addressing the issues presented: 1. John Smith tax issues: a. How is the $300,000 treated for purposes of federal tax income? b. How is the $25,000 treated for purposes of federal tax income? c. What is your determination regarding reducing… View Article

Financial Data Analysis

Financial Data Analysis Since 1975, Patton Fuller Community Hospital (PFCH) has been serving the people of the Kelsey and the surrounding communities. PFCH is a for-profit organization and is owned by physician active within the facility. Owned by the physicians active at the hospital, the organization is governed by a 14 member board of directors,… View Article

East Coast Yachts cash flows

When looking at a statement of cash flow it’s essential to find out what resources are being used under the operations category. As our text states, operating cash flow is really the cash flow generated by business activities, including sales of goods and services. Under this category organizations can also calculate tax payments, but not… View Article

Advantages and Disadvantages of Historical Cost Accounting

Historical cost accounting has been a controversial method that experienced many criticisms over a period of time, especially since it considers the acquisition cost of an asset and does not recognize the current market value. Merits and demerits of this method are as follows. The most obvious advantage of HC accounting is objectivity. It is… View Article

Capital Budgeting Methods and Cash

In the early 1990s, the farm economy in the heartland of the United States was weak. Farmers in North Dakota produced hard, amber Durham wheat and exported 75% to Italy for the production of high quality pasta. Prices for raw wheat fluctuated radically, depending on weather and growing conditions. Many farmers were having difficulty meeting… View Article

Balance sheet

According to the depreciation rates used by the company and described in the Production Cost Report, if a company adds 50 new workstations at a cost of $250,000 each and also spends $5 million for an addition to its assembly plant to accommodate the new workstations. According to the cost allocation methods used in the… View Article

Final Paper Cost Accounting

Principles of Accounting II Cost Accounting Accounting is the accumulation and aggregation of info for decision makers including administrators, traders, authorities, loan providers, as well as the general public. Accounting systems impact behavior and administration and have effects across divisions, companies, and even nations. This report will provide the reader a knowledge regarding cost accounting…. View Article

Week 6 Assignment

E10-1(Acquisition Costs of Realty) The expenditures and receipts below are related to land, land improvements, and buildings acquired for use in a business enterprise. The receipts are enclosed in parentheses. (a) Money borrowed to pay building contractor (signed a note) $(275,000) (b) Payment for construction from note proceeds 275,000 (c) Cost of land fill and… View Article

China Petroleum and Chemical Corporation

The net profit figure of RMB 19,011 reported under PRC GAAP was increased to RMB 21,593 under IFRS. The increase of RMB 2,582 under IFRS was due to the following reasons: Dep. and disposal of oil and gas properties RMB3,044 Acquisition of subsidiaries 443 Capitalization of general borrowing costs 389 Gain from issuance of shares… View Article

Pretax accounting income

On January 1, 2010, Ameen Company purchased a building for $36 million. Ameen uses straight-line depreciation for financial statement reporting and MACRS for income tax reporting. At December 31, 2012, the carrying value of the building was $30 million and its tax basis was $20 million. At December 31, 2013, the carrying value of the… View Article


Due to the controversy economies have had towards which method to use for accounting, there has been a compromise to converge the two most commonly used methods – GAAP and IFRS. However, these two methods are still very different. The convergence project has yet to be completed; in the meantime, more and more countries are… View Article

Fonderia di Torino, S. p. A Case Study

In late 2000, Francesca Cerini, managing director of Fonderia di Torino, is contemplating purchasing a new automated molding machine. Fonderia di Torino is a company that specialized in the production of precision metal castings for use in products like automotive, aerospace, and construction equipment. The company, located in Italy, is known for the quality and… View Article

Case Starbucks

a. Assuming that Starbucks had no significant permanent differences between book income and taxable income, did income before taxes for financial reporting exceed or fall short of taxable income for 2012? Explain. Taxable income before income tax is $2,059 million, and taxable income should minus $674.4 million. So income before taxes exceeds taxable income. b…. View Article

South Delaware Coors, Inc. Proforma Income Statement

Revenues /Sales: Estimated revenues are computed by using a combination of study A, B, C, and I. Revenues are computed as follows: per capita consumption (41.9) * population (160.85) * market share (.083) = total estimated gallons sold (559.388 thousand). Case/bottle beer accounts for 75% of consumption and keg beer accounts for 25% of consumption…. View Article

Final Exam

1. (TCO A) On what should the government-wide financial statements report? 2. (TCO B) According to GASB standards, when should transfers be recognized? 3. (TCO C) Comparisons of budgeted versus actual revenues and expenditures are a requirement of which of the following situations? 4. (TCO D) The revenues account of a government entity is debited… View Article

Amsterdam Company

Question 2 Presented below is information related to Rembrandt Inc.’s inventory. (per unit)SkisBootsParkas Historical Cost273.79152.7576.37 Selling Price312.70208.95106.27 Cost to distribute27.3811.533.60 Current replacement cost292.52151.3173.49 Normal profit margin46.1141.7930.62 Determine the following: Question 3 Matlock Company uses a perpetual inventory system. Its beginning inventory consists of 67 units that cost $40 each. During June, the company purchased 202… View Article

The intangible assets section of the balance sheet

E12-1 (Classification Issues—Intangibles) Presented below is a list of items that could be included in the intangible assets section of the balance sheet. Instructions (a)Indicate which items on the list above would generally be reported as intangible assets in the balance sheet. 13.Goodwill acquired in the purchase of a business. 15.Cost of purchasing a patent… View Article

Final Exam: Corporations

Question 1: Buttercup Corporation issued 250 shares of $11 par value common stock for $4,125. Prepare Buttercup’ journal entry. Question 2: Wilco Corporation has the following account balances at December 31, 2012. Common stock, $5 par value $511,670 Treasury stock 95,260 Retained earnings 2,400,840 Paid-in capital in excess of par 1,320,150 Prepare Wilco’s December 31,… View Article

Quiz 2 answers

CHAPTER 11 In the current year, Rich has a $40,000 loss from a business he owns. His at-risk amount at the end of the year, prior to considering the current year loss, is $24,000. He will be allowed to deduct the $40,000 loss this year if he is a material participant in the businessCorrect Answer:… View Article

Acc 422 final exams

1) Which of the following is NOT considered cash for financial reporting purposes? 2) What is the preferable presentation of accounts receivable from officers, employees, or affiliated companies on a balance sheet? 3) Which of the following is considered cash? 4) If a company employs the gross method of recording accounts receivable from customers, then… View Article