...Recognizing Differences Brandi Jones XACC/291 01/25/15 Nathan LePage Recognizing Differences Every business has assets that aid in keeping their business up and running. Assets are not intended for sale to customers, but instead are used in the operations of a business. It could be anything from property, land improvement, vehicles, equipment, buildings, etc. The cost principle in accounting requires that companies record their assets a cost, which includes all expenses needed to acquire that asset and get it ready for its intended use. Depending on what the asset is helps determine how a company needs to expense it. It is important to be able to recognize the differences between the valuation, depreciation, amortization and depletion of those costs. (Weygandt, Kimmel & Kieso, 2010). Valuation of an asset is the process of determining the value of an asset. This does not mean that the total cost a company spends to acquire an asset and have it ready for operations is the actual value of it. Instead the valuation of an asset is the fair market value of it, which can be quite different than what the actual company spends on it. Things like historical value, current fair market value, current supply and demand, or even values of similar assets might be taken into consideration when determining the actual value. (Farlex Financial Dictionary, 2012). Asset valuation is usually performed prior to the sale of an asset or prior to purchasing insurance...
Words: 885 - Pages: 4
...Recognizing Differences N. Jackson XACC/291 May 14, 2014 Christopher Severson Recognizing Differences Accounting requires that the most accurate numbers be recorded as they relate to specific assets and liability accounts. In order to ensure that those items have been properly identified and aligned with the proper costs, various processes are used based on the type of item that needs to be recorded. Four processes that are utilized to record the costs associated with plant assets, natural resources and intangible assets include valuation, depreciation, amortization and depletion. The process of valuation is different from depreciation, amortization and depletion in that it involves of making an estimation of an asset based in the market value. This means that the market value at the time of estimation, will determine what the worth is of an asset. Depreciation is the method utilized when allocating the costs of plant assets. During this process, the costs of plant assets are reduced during the service life of that asset. When utilizing depreciation, there are three different calculation methods that can used. Those three methods are the straight-line method, units-of –activity and the declining-balance method. Even though any of the methods can be used to determine depreciation, only one should be used at a time. Using more than one method at the same time is not recommended as...
Words: 439 - Pages: 2
...Recognizing Differences Checkpoint Veronica Course: XACC 291 July 10, 2013 What are the different types of dividends corporations may issue? When should a corporation pay dividends? Do you prefer a stock a cash dividend or dividend? Why First I would like to start by explaining the four dividends and those are cash, stock, property and scrip. Cash dividends are often paid for per share of stock with in the company. A stock dividend is often offered to shareholders, which they don’t need to pay taxes until they are sold. Property dividends are offered to shareholders when companies are having financial difficulties. Scrip is almost the same except that they issue scrip instead of paying money to their shareholders. Personally if I ever had to choose between any of the four types of dividends it would be the stock it is one of the best options to choose from granted if the company happens to go belly-up so will you. However if the stocks should significantly rise and prosper so will you. This is the chance you take when you invest in any company. The one thing you should do before you invest in any company is research it. Making sure your money is in the right place is probably the smartest thing you can do. If the company is in financial ruin, you are more likely to go down with it. Assuming you did your homework right, you are going to run into some red flags that means there is something terribly wrong with the way the financial paper work is being handled...
Words: 292 - Pages: 2
...Recognizing Differences Katie Charger AACC/291 May 21, 2014 Nathan LePage Recognizing Differences Write a 350- to 500-word paper in which you differentiate between valuation, depreciation, amortization, and depletion. Is it appropriate to calculate depreciation using two different methods? Why? Valuation is the determining the value of an asset. This is like estimating the value of something or giving value to an item that didn’t already have a set value. This value can change from year to year. Amortization is the act of spreading the cost of something over a specific period of time or a specific amount of payments. An example of this would be when a company buys a new machine for their business. They would make a down payment and then have a payment schedule to finish paying off the machine. Depreciation allows a company to cover the decrease in the value of an asset because of normal wear and tear. This is something that happens to a company’s assets over a period of time. An example of this would be when a shipping company buys a truck. As soon as the truck is driven off the lot, the value decreases. The more the truck is driven, the more wear and tear on the parts, which in turn makes the truck depreciate in value even more. There are two different ways to depreciate an asset. There is the straight line method and the accelerated method. According to Accountingcoach.com, it is acceptable for a company to calculate depreciation using both methods...
Words: 392 - Pages: 2
...Recognizing differences Checkpoint Despite its differences, depreciation, depletion and amortization are used as a basis to allocate the historical cost of an asset over its useful life in order to conform with the idea that the earnings of the company is matched accordingly with relative expenses including the wear and tear of the assets used in production, construction, and other purposes. When is it appropriate for businesses to calculate depreciation using two different methods and why?? Valuation is the process of estimating the market value of a financial asset or liability. Valuation refers to the asset being recorded and disclosed at the current market value regardless of whether the price is above or below cost. Depreciation is the calculation of the cost of an asset over what the business determines its useful life in a rational and systematic manner. Straight line method, unites of activity method, and the declining methods are the three different methods to calculating depreciation for tangible assets. Amortization is the systematic write-off of an intangible asset that has a useful life and it is classified as an operating expense in the income statement. It will reflect on the financial statement over time. Amortization of intangible assets is similar to depreciation of plant assets and the depletion of natural resources in that is a process of cost allocation. Depletion is the process of allocating the cost of a natural resource to the period when it is consumed...
Words: 301 - Pages: 2
...Recognizing Differences Johnny T Russell XACC/291 Paula Hill 06/22/2014 Abstract There are differences between depreciation, valuation, amortization, and depletion. This short essay will show how they different from each other and whether it is ok to calculate depreciation by using two different methods. Depreciation, depletion, and amortization may have a different way of being presented. Each one is are accounting terms and are listed within the Generally Accepted Accounting Principles (GAAP). Each one is used to distribute the past cost of a particular asset. These allocations are especially helpful when checking the life of the asset. They compare the expenses and the wear and tear of the equipment while in production, or daily operations and or in administrative duties. When measuring these three you also have to take into consideration past cost, salvage value if any, and what is the useful life estimated to be? First is depreciation, this is when you allocate any tangibles that the asset has in the past. You take the past cost and you subtract the normal remaining or what the salvage value could be over its lifetime. You can use the easiest method which is the straight line method. Even though this method comes with a lot of criticism because it says that this method of time than the life or usage of the equipment. You can however use the accelerated method. This method gives you a broader range of how to deal with depreciations. Next...
Words: 454 - Pages: 2
...Checkpoint: Recognizing Differences Student Name XACC/291 11/14/2012 Instructor Name Checkpoint: Recognizing Differences Valuation is the process of determining what an asset or liability is actually worth. This is done using either the absolute value model, option pricing model, or relative value model. The reason an asset or liability would be evaluated for valuation include financial reporting, investment analysis, and mergers. Depreciation helps to indicate how much of an asset’s value has been used up, as well as the allocation of the cost of the asset to the specific periods in which the asset was used. The IRS website tells us that “depreciation is an income tax deduction that allows a taxpayer to recover the cost or other basis of certain property. It is an annual allowance for the wear and tear, deterioration, or obsolescence of the property. Most types of tangible property (except, land), such as buildings, machinery, vehicles, furniture, and equipment are depreciable. Likewise, certain intangible property, such as patents, copyrights, and computer software is depreciable” (2013, A Brief Overview of Depreciation, para. 1). Amortization is the spreading of an intangible asset’s cost over the life of the asset. This is different from depreciation as that is prorating the asset’s cost over the asset’s useful life. Amortization costs are reported on the income statement as an expense over the...
Words: 377 - Pages: 2
...Checkpoint: Recognizing Differences Melissa Leech ACC/291 04/09/14 Christopher Phillips Checkpoint: Recognizing Differences Valuation is the process of determining the value of an object or a company. You can do this by using the absolute value model, option pricing model, or relative value model. Valuations can be done on assets such as investments in stocks, or intangible assets such as patents and trademarks. The absolute value models determine the present value of an asset. The relative value model determines the value based on the market prices of similar assets. Option pricing models are used for warrants, call options, and etc. (Investopedia.com) Depreciation is a method of allocating the cost of an asset over its life span. This is usually done by businesses for long-term assets for tax and accounting purposes. When determining depreciation for accounting purposes, it indicates how much an assets value is worth. For tax purposes, the business can deduct the cost of the asset. For example, real estate is an asset that can lose value over time. (Investopedia.com). When you use depreciation, it can be acceptable for companies to use two different methods. Many companies use at least two or sometimes more. Depending on what you are depreciating, you can spread it over different amount of years. When the amount of an object begins to decrease or a period of time, it becomes an example of amortization. This process allocates...
Words: 421 - Pages: 2
...Recognizing differences Checkpoint Despite its differences, depreciation, depletion and amortization are used as a basis to allocate the historical cost of an asset over its useful life in order to conform with the idea that the earnings of the company is matched accordingly with relative expenses including the wear and tear of the assets used in production, construction, and other purposes. When is it appropriate for businesses to calculate depreciation using two different methods and why?? Valuation is the process of estimating the market value of a financial asset or liability. Valuation refers to the asset being recorded and disclosed at the current market value regardless of whether the price is above or below cost. Depreciation is the calculation of the cost of an asset over what the business determines its useful life in a rational and systematic manner. Straight line method, unites of activity method, and the declining methods are the three different methods to calculating depreciation for tangible assets. Amortization is the systematic write-off of an intangible asset that has a useful life and it is classified as an operating expense in the income statement. It will reflect on the financial statement over time. Amortization of intangible assets is similar to depreciation of plant assets and the depletion of natural resources in that is a process of cost allocation. Depletion is the process of allocating the cost of a natural resource to the period when it is...
Words: 441 - Pages: 2
...encompass people with many differences. It is recognizing and appreciating the variety of characteristics that make individuals unique. Some examples include: age, cognitive style, culture, disability (mental, physical, and learning), education, religious beliefs, language(s) spoken, etc. According to the text book, diversity refers to “all” ways that people are different. The whole idea of diversity opens the scope and defines diversity as a combination of items characterized by differences and similarities. Diversity has made significant improvements in our lives and will continue to grow with the changing values of our society. As one recognizes the many proportions of diversity, it is important to note that not all of them are visible. The visible aspects of diversity are those things we cannot change and are external, such age, race, ethnicity, gender, and physical attributes. On the other hand, hidden diversity includes the things not easily seen such as work experience, educational background, income, religious beliefs, and parental status. Many of our dimensions that make us different are considered hidden because they are not apparent by just looking at a person. No person’s diversity is exactly like another’s. It is a mixture of diversity attributes, that are both visible and hidden that define a person’s diversity. Diversity explores our unique characteristics that makes us who we are and deals with everyone’s individuality. So by recognizing, valuing and embracing...
Words: 767 - Pages: 4
...Associate Program Material Diversity Worksheet Answer each question in 50 to 150 words. Provide citations for all the sources you use. 1. What is diversity? Why is diversity valued? Diversity is the state or fact of being diverse; difference; unlikeness Diversity is also the inclusion of individuals representing more than one national origin, color, religion, socioeconomic stratum, sexual orientation, etc. (http://goo.gl/ErfMiD) Diversity is valued because recognizing differences between people and acknowledging that these differences are valued assets is key. (http://goo.gl/7GNS9S) 2. What is ethnocentrism? In what ways can ethnocentrism be detrimental to a society? Ethnocentrism is a tendency to view alien groups or cultures from the perspective of one’s own. (http://goo.gl/0ioZf) I think that ethnocentrism can be detrimental to a society in many ways, One is as a people we tend to judge a book by its cover instead of giving things a chance and seeing what they are really about. Two we tend to look at people that’s different than us in a judgmental way, instead of embracing the difference and respecting there ways of doing things. 3. Define emigration and immigration. Emigration is to leave one country to settle in another. (http://goo.gl/79xfyM) Immigration is the movement of non-native people into a country in order to settle there. (http://goo.gl/F5qrux) 4. What are some of the ways groups of people...
Words: 490 - Pages: 2
...best kind of flavor that nature has to offer. Flavors Apple Orange Pineapple Peach Guava Mango Chaunsa Grape Pomegranate The Brand Name Diversity: 1. A range of different things. 2. The inclusion of individuals representing more than one national origin, color, religion, socioeconomic stratum, sexual orientation, etc. The reason we picked diversity as our brand name was to use it as a pun. It not only points towards how our wide variety of juices can be consumed in a number of situations by everyone, but also celebrates the difference in people’s backgrounds in Pakistan; race, religion, ethnicity, sect, age, gender, etc. Diversity, besides being a healthy and refreshing drink, hopes to strengthen the bonds between different people and remind everyone that our differences should not divide us. The concept of diversity encompasses acceptance and respect. It means understanding that each individual is unique, and recognizing our individual differences, just the way fruits have different but great flavors and we love them all. Target Market Diversity targets everybody. Because these juices are pure and healthy, anyone can have them at any time. From a child to an elderly person, everyone can buy this refreshing drink, whether it’s for guests or after a vigorous game. Shooting of the ad Location We had three different locations to capture the right...
Words: 421 - Pages: 2
...WEEK ONE DISCUSSION What are the dimensions of cultural diversity? Identify and briefly explain the dimensions by referencing both textbooks. My initial response to the question “What are the dimensions of cultural diversity?” were religion, race, ethnicity and gender. However, upon reading a chapter in the book Understanding and managing diversity : readings, cases and exercises by Harvey and Allard, the chapter A World View of Cultural Diversity by Thomas Sowell (2009), changed my perspective. After reading this chapter, I understood the question much differently and changed my view of what are cultures. According to Sowell, cultures are non static, they are fluid meaning they evolve over centuries. An important dimension of cultures is geography, which is “an important long-run influence on the shaping of cultures as well as in narrow economic terms (Harvey & Allard, 2009, p. 75). Furthermore, Sowell states that “cultures exist to serve the vital, practical requirements of human life—to structure a society so as to perpetuate the species, to pass on the hard-earned knowledge and experience of generations past and centuries past to the young and inexperienced in order to spare the next generation the costly and dangerous process of learning everything all over again from scratch through trial and error—including fatal errors” (Harvey & Allard, 2009, p77). Therefore, the two main dimensions of cultural diversity identified are historical and geographical as these dimensions...
Words: 970 - Pages: 4
...There are multiple cultures with various differences and similarities. Some cultures differentiate slightly while others do so tremendously. The context component of communication plays a large part when dealing with comparing and contrasting cultures. When comparing cultural communication components between two countries such as the United States and China context (which includes; historical, psychological, environmental, and social) plays a large role in the areas of power distance, individualism, and long-term orientation. According to Geert Hofstede comparison chart China’s power distance dominates over the United States being 80% to the U.S. 40%. This indicates that China acknowledges the different social groups within their nation and treats them accordingly. China accepts inequality and believes in ranks and dominion over the subordinates. There is not a limit to the power that they have over subordinates due to their ranks. On the contrary of China beliefs of power distance the United States excel in individualism compared to China. In reference to Geert Hofstede comparison tool , the United States more than quadruple the percentage of individualism when compare to China with a rate of 91% compared to China’s 20%. This further confirms the differences in social status in the communication context component. America was built on a no respect of person’s theory, meaning that it is not acceptable to display superiority over one of a lower status. Although it does occur...
Words: 395 - Pages: 2
...handout will help you first to determine whether a particular assignment is asking for comparison/contrast and then to generate a list of similarities and differences, decide which similarities and differences to focus on, and organize your paper so that it will be clear and effective. It will also explain how you can (and why you should) develop a thesis that goes beyond “Thing A and Thing B are similar in many ways but different in others.” INTRODUCTION In your career as a student, you’ll encounter many different kinds of writing assignments, each with its own requirements. One of the most common is the comparison/contrast essay, in which you focus on the ways in which certain things or ideas—usually two of them—are similar to (this is the comparison) and/or different from (this is the contrast) one another. By assigning such essays, your instructors are encouraging you to make connections between texts or ideas, engage in critical thinking, and go beyond mere description or summary to generate interesting analysis: when you reflect on similarities and differences, you gain a deeper understanding of the items you are comparing, their relationship to each other, and what is most important about them. RECOGNIZING COMPARISON/CONTRAST IN ASSIGNMENTS Some assignments use words—like compare, contrast, similarities, and differences—that make it easy for you to see that they are asking you to compare and/or contrast. Here are a few hypothetical examples: * Compare and contrast Frye’s...
Words: 2763 - Pages: 12
