Title: kodak analysis
|Date:||December 21, 2014|
|Length:||22 / 6411|
|No of views:||0|
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Second, allocate costs to sales, inventory, etc.
Cost Convention: Items are valued at the historical cost of all input factors.
Conservatism Convention: Recognize costs immediately and revenue only when it is certain.
Accruals Convention: An obligation from a credit worthy customer may be regarded as a sale...
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Reserves would be a part of owner's equity, except for some reason are being held back from recognition as such. Bad debt reserves are owner's equity held for the purpose of covering bad debt that may arise in future periods.
· Straight Line: Depreciation = (Purchase Cost ? Expected Residual Value) / Service Life
· Reducing Balance: Depreciation = Current Book Value * Calculated Rate
Calculated Rate = where n = years of service, rv = residual value, pc = purchase cost...
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