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Depreciation and Wasting Assets and Their Treatment in Assessing Annual (Classic Reprint)
by:Percy Dewe Leake
Comparuon between annuity and sinking fund methods Effect of charging unexpired uapitol outlaf witli iutereB tlllufltration of this effect In commercial accouncing intereet should not be ubarged on capital locked up ia wasting asaeta But interest is on Important factor in computing cost of production IMminution in capital locked ijp in industrial plant...
Comparuon between annuity and sinking fund methods Effect of charging unexpired uapitol outlaf witli iutereB tlllufltration of this effect In commercial accouncing intereet should not be ubarged on capital locked up ia wasting asaeta But interest is on Important factor in computing cost of production IMminution in capital locked ijp in industrial plant does not diminish the extent or efB cienoj of the plant Use of annuity and sinldng fund methods hj municipalttieB ... Computation of annual cost in a terminating undertaking Interest should, in such cases, be charged on average capital ... I llastration of method of aniving at avorage capitalS hort method of arriving at average capital i Use of interest in dealing with cost of leasehold premises ... IS ummary of conclusions (F urther argumenta against the use of interest or discount in commercial accounting, unless octmilly payable, or actually receivable I CHAPTER VI. Industrial plant the largest diciaion of wastiug assets 67 Extent of capital outlay on industrial plant 6B Investment therein is nothing more than payments in advance Outlay on industrial plant compared with other advance payments G9 Agreement between capital outlay account in financial bookn and roister of industrial plant G9 Eipinitionofrivu is the proper basis for measuring depreciation 71 Oost, less scrap value, should be distributed to revenue equally over each year of the whole-life period 73 This secures a regular annual charge coinciding, roughly, with value consumed each year 78 Employment of money set aside 74 Increase in cost of repairs in later years ... 71 The use of existing industrial plant cannot be deferred with impunity 75 Treatment should he similar whether life be one or more years 76 Depreciation provision is not (or future renewals, but for past capital outlay eipired 78 Depreciation is fall in exchangeable value over whole(Typographical errors above are due to OCR software and don't occur in the book.)
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