Evaluate the advantages and disadvantages of depreciation as an accounting concept. | Homework.Study.com (2024)

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• Explain the purpose of depreciation and compare different methods of accounting for it.
• Discuss the Advantages and Disadvantages of the Cash Basis of Accounting.
• Define Depreciation. Explain its significance. Elucidate the factors that affect depreciation. Explain its effect on Profit and Loss Account as well as Balance Sheet.
• Explain two advantages and two disadvantages in using both the cash and the accrual basis of accounting.
• Write a short paragraph to explain the concept of depreciation as used in accounting.
• What is the advantage and disadvantage of historical concept of accounting?
• Explain the conventional accounting concept of depreciation accounting.
• What depreciation methods might be used for the computer system? Describe the advantages and disadvantages of each.
• List the advantages and disadvantages of responsibility accounting.
• Explain the differences between depreciation expense and the accumulated depreciation.
• What are the advantages and disadvantages of using the accrual basis of accounting rather than the cash basis?
• (a) Describe cash accounting and accrual accounting systems. (b) What are the advantages and disadvantages of each?
• Write and explain difference between depreciation on the income statement and depreciation on the balance sheet.
• Fair value accounting is a newer financial accounting concept in U.S. GAAP. Describe an advantage and a disadvantage that you see in applying fair value to certain assets.
• Why would a firm choose one depreciation method over another? What are the advantages of each method?
• What are the advantages and disadvantages of using either cash or accrual basis of accounting? Why might a company be able to justify in using cash or accrual basis of accounting? Give examples
• 1. Describe the purpose of depreciation (or cost recovery) deductions. 2. Give an example of how it benefits a company.
• Write and explain all depreciation methods.
• Is depreciation a method of valuation or allocation? Explain.
• Describe the concept of "depreciation recapture".
• Define depreciation and explain the purpose of the journal entries.
• (a) Describe some of the advantages and disadvantages of using the cash-basis method of accounting. (b) Give some examples.
• Explain two advantages and two disadvantages in using both the cash and the accrual basis of accounting. Then, determine the one that you believe provides the most useful financial information to users.
• Explain the major advantages and disadvantages inherent in using both the cash and the accrual basis of accounting. Then, determine the one (1) that you believe provides the most useful financial information to users. Identify at least two (2) types of bu
• Describe the advantages and disadvantages of using the statement of cash flows as a basis for evaluating the performance of a firm.
• What are the advantages and disadvantages of using measures such as operating income before depreciation (OIBD) or earnings before interest, taxes, depreciation, and amortization (EBITDA) rather than
• Discuss three to five advantages and disadvantages of implementing an IT-based accounting system.
• (a) Explain how to compute and record depreciation using the various methods. (b) Provide three examples.
• Describe depreciation, amortization, and depletion. How do they differ?
• Why are depreciation methods important in accounting?
• Describe the difference between depreciation expense and accumulated depreciation. Describe the formula used for computing the straight line depreciation for a depreciable asset. Explain how to calculate an asset's book value.
• Explain how depreciation may be justified from an 'Asset and Liability' view of conceptual primacy.
• Briefly explain the differences between the terms, depreciation, depletion, and amortization.
• Explain how depreciation may be justified from an 'Income and Expense' view of conceptual primacy.
• (a) What is the life-cycle costing method in accounting? (b) Describe its advantages and disadvantages.
• What are the differences between valuation, depreciation, amortization, and depletion?
• What are the differences among valuation, depreciation, amortization, and depletion?
• Explain the difference between depreciation and depletion.
• Describe the advantages and disadvantages of using the income statement as a basis for evaluating the performance of a firm.
• Explain amortization of intangibles. Use examples.
• Differentiate between valuation, depreciation, amortization, and depletion.
• Describe the Benefits and Drawbacks of GPK, RCA. GPK can be described as marginal planning and cost accounting, where RCA is Resource Consumption Accounting.
• What does the term depreciation mean in accounting?
• Is it appropriate to calculate depreciation using two different methods? Explain why or why not.
• Discuss the implications of the different assumptions used in calculating depreciation. What effect does changing these assumptions have on the balance sheet and income statement?
• Discuss the advantages and the disadvantages of each costing method including FIFO, LIFO, and Average Cost.
• Why do we have various methods of depreciation? Explain.
• Discuss the differences between the different methods of depreciation.
• List (a) the similarities and (b) the differences in the accounting treatments of depreciation and cost depletion.
• What is depreciation? What are the methods used to compute depreciation?
• Discuss the primary advantages and disadvantages of applying the direct write-off and the allowance method of writing off accounts. Even though the direct write-off method is not acceptable for generally accepted accounting principles (GAAP) reporting, ta
• Discuss the advantages and disadvantages of equity financing.
• What are the similarities and differences between depreciation and amortization?
• What are the similarities and differences of depreciation and amortization?
• How do depreciation expense and accumulated depreciation differ?
• Compute Depreciation Using the Straight-Line and Declining-Balance Methods. Give an example.
• What are some benefits and risks of various depreciation methods on a company's net income?
• Describe the drawbacks of recording assets in the books of account following the historical cost principle.
• Distinguish among depreciation, depletion, and amortization.
• How does tax depreciation differ from financial accounting depreciation?
• Explain the following statement: "Depreciation is a process of allocation and not valuation."
• Discuss the different accounting concepts, clearly bringing out the strength and weaknesses of each.
• Explain the major advantages of a business owner with minimal accounting experience maintaining the company's book. Then explain the disadvantages. Analyze the major impact to the users of accounting statements if the statements are prepared in error. Pro
• Explain the concept of depreciation. Which of the following depreciation methods would you recommend: straight-line depreciation, double declining balance method, or an alternative method?
• What are the disadvantages of using the payback method as a capital budgeting technique? What are the advantages? Why is it used so frequently?
• Describe the problems faced while accounting for intangibles.
• Is it appropriate to calculate depreciation using two different methods? Why or why not?
• What is the difference between depreciation and amortization?
• Identify some advantages of technology for accounting.
• What is the difference between amortization and depreciation?
• What are the advantages and disadvantages of LIFO?
• What is goodwill? How do publicly traded companies account for its value over time? Consider the matching principle. Make an argument for why this treatment is inappropriate. And how are depreciation, depletion, and amortization the same? How are they dif
• Explain what basic condition are to be met for the decline in value (depreciation) of a depreciating asset to be deductible.
• Briefly explain how to account for a change in depreciation method.
• Explain how to account for a change in depreciation method.
• Why is an accumulated depreciation account used in making the adjustment for depreciation?
• What are the advantages and disadvantages of using automated accounting systems to do adjusting entries?
• (a). What is Depreciation? Classify it and explain the factors to be considered in assessing the rate of depreciation. (b). What consideration should govern the amount to be provided (if any) for depreciation or diminution in the value of the following a
• Discuss the following concept and its importance: Accounting rate of return.
• How to calculate depreciation on profit and loss statement?
• Describe the difference between depreciation methods: Straight-line and Double Declining Balance
• how to journalize, when it comes to depreciation?
• Define Depreciation expense.
• Discuss the advantages and disadvantages of centralized and decentralized operations and their impact on managerial accounting.
• Identify and describe in details the different methods available when making reporting decisions for accounting for uncollectible receivables (bad debts). Explain the advantages and disadvantages of each method.
• Discuss the advantages and disadvantages of the "up and out" promotion policy followed by many accounting firms.
• Explain the main disadvantages of each inventory valuation method.
• Compare and contrast the methods that can be used in accounting for investments. How does a company choose a method? What are the advantages and disadvantages of each?
• 1. Compare and contrast the methods that can be used in accounting for investments. 2. How does a company choose a method? 3. What are the advantages and disadvantages of each?
• What are the advantages and disadvantages in using measures such as operating income before depreciation (OIBD) or earnings before interest, taxes, depreciation, and amortization (EBITDA) rather than net income in comparing profitability across foreign co
• What are the benefits and drawbacks of ABC accounting?
• Explain the depreciation concept. What items in a physician practice can be depreciated? What is the purpose?
• What is the difference between depreciation expense and accumulated depreciation? Why does the book value of an asset never go below the residual value?
• What is depreciation? Why are accountants required to depreciate assets?
• Explain the major advantages and disadvantages of a business owner with minimal accounting experience maintaining the company's book.
• Since depreciation does not affect cash, except for when dealing with the tax advantage, other than tax reasons, why should companies include depreciation expense in their income statements that they
• What are some advantages and disadvantages of the specific identification method of accounting for inventory?
• 1. Discuss capital budgeting techniques including the Payback Rule, IRR, NPV, and the Profitability Index. Discuss the advantages and disadvantages of each one. 2. Give an example of each capital budgeting technique above using your own numbers includin
• What are some of the practical characteristics of fixed assets that complicate the calculation of depreciation?
• What are the advantages and disadvantages of using historical cost on the balance sheet for property, plant, and equipment?