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F. Naz
F. Naz, Chartered Accountant
Category: Homework
Satisfied Customers: 4100
Experience:  Experience with chartered accountancy
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please, can I get some help with these questions? 1. What

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please, can I get some help with these questions?
1. What are the differences among valuation, depreciation, amortization, and depletion? Is it appropriate to calculate depreciation using two different methods? Why?
2. What types of industries have unearned revenue? Why unearned revenue is considered a liability? When is the unearned revenue recognized in the financial statements?
3. Which depreciation method provides you with the highest depreciation expense in the first year? Why?
Submitted: 2 years ago.
Category: Homework
Expert:  F. Naz replied 2 years ago.

Please, can I get some help with these questions?
1. What are the differences among valuation, depreciation, amortization, and depletion? Is it appropriate to calculate depreciation using two different methods? Why?

Valuation is the determination of worth of an asset on a particular date, for example, the fixed assets valuation is done on the basis of purchase cost less the cost of assets used up to date. The used value of an asset has different names depending on the nature of assets. The man made fixed asset usage is recoded using term depreciation, the natural fixed assets usage is recorded using the term depletion and the intangible fixed assets usage is recorded using amortization.

Two different methods can be used, one for accounting purpose and other for tax purpose.

2. What types of industries have unearned revenue? Why unearned revenue is considered a liability? When is the unearned revenue recognized in the financial statements?

Insurance company do have unearned revenues, as the premium is received in advance on periodic basis. It cannot be considered as revenue unless the period has not expired, as the insurer can ask for refund of premium, therefore it is recorded as liability. When the period expires for which premium has been paid, it should be recognized as revenue.

3. Which depreciation method provides you with the highest depreciation expense in the first year? Why?

The double declining balance method gives the highest amount of depreciation in the first year, it is for two reason, one the rate is doubled as the name suggests and the second the salvage value is not deducted from cost to arrive the amount of the depreciation.

 

F. Naz, Chartered Accountant
Category: Homework
Satisfied Customers: 4100
Experience: Experience with chartered accountancy
F. Naz and 6 other Homework Specialists are ready to help you
Customer: replied 2 years ago.

Hi Muhammad, the teacher wants this to be clarified,

Valuation is the determination of worth of an asset on a particular date, for example, the fixed assets valuation is done on the basis of purchase cost less the cost of assets used up to date. The used value of an asset has different names depending on the nature of assets. The man made fixed asset usage is recoded using term depreciation, the natural fixed assets usage is recorded using the term depletion and the intangible fixed assets usage is recorded using amortization." Please clarify your statements.

Customer: replied 2 years ago.

Hi Muhammad, the teacher wants this to be clarified, can you please?

Valuation is the determination of worth of an asset on a particular date, for example, the fixed assets valuation is done on the basis of purchase cost less the cost of assets used up to date. The used value of an asset has different names depending on the nature of assets. The man made fixed asset usage is recoded using term depreciation, the natural fixed assets usage is recorded using the term depletion and the intangible fixed assets usage is recorded using amortization." Please clarify your statements.

Expert:  F. Naz replied 2 years ago.

Hi Muhammad, the teacher wants this to be clarified, can you please?

Valuation is the determination of worth of an asset on a particular date, for example, the fixed assets valuation is done on the basis of purchase cost less the cost of assets used up to date. The used value of an asset has different names depending on the nature of assets. The man made fixed asset usage is recoded using term depreciation, the natural fixed assets usage is recorded using the term depletion and the intangible fixed assets usage is recorded using amortization." Please clarify your statements.

Customer: replied 2 years ago.
I dont understand this, you send me the same thing
Expert:  F. Naz replied 2 years ago.
This is not the same thing I have given you the examples for each item, even if you could not understand please identify the area so I could help you, thanks.
Customer: replied 2 years ago.
He wanted more clarification to the answers you gave but I will write some clarification to him in regards XXXXX XXXXX you have explain to me so far. I will let you know what he thinks
Expert:  F. Naz replied 2 years ago.
okay
Customer: replied 2 years ago.
ok
Expert:  F. Naz replied 2 years ago.
thanks.
Customer: replied 2 years ago.

Hi Muhammad, I have some new questions, hope you can help.

 

1, Why does a company choose to form as a corporation? What are the steps required to become a corporation? What are the advantages and disadvantages of the corporate form of doing business?

2, Why is preferred stock referred to as preferred? What are some of the features added to preferred stock that make it more attractive to investors? Would you select preferred stock or common stock as an investment? Why?

3, What are the different types of dividends corporations may issue? When should a corporation pay dividends? Do you prefer a stock dividend or a cash dividend? Why?

Expert:  F. Naz replied 2 years ago.
What is your deadline, thanks.
Customer: replied 2 years ago.
sorry just checking in. my deadline is today but I will take tomarrow if you can do it.tks
Expert:  F. Naz replied 2 years ago.
Okay I will try my best to answer it today or by tomorrow thanks.
Customer: replied 2 years ago.
tks Muhammad
Expert:  F. Naz replied 2 years ago.
okay
Customer: replied 2 years ago.
I cannoy open this file
Expert:  F. Naz replied 2 years ago.
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F. Naz, Chartered Accountant
Category: Homework
Satisfied Customers: 4100
Experience: Experience with chartered accountancy
F. Naz and 6 other Homework Specialists are ready to help you

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