I need revision and a little help-- anyone

I need to see what you all think about my post in answering the question. Also, I need to comment on a few other posts, expanding their ideas. I need help on commenting one of the student's post (below).

Your friend Lucy slept through a class in which her professor explained the concepts of depreciation and amortization. Use the Cybrary's Accounting links and/or dictionary sources and the Internet to learn about these concepts, and then write a 4-5 paragraph explanation of the concepts for Lucy. Be sure to cite your sources.
In your own words, please post a response to the Discussion Board and comment on other postings. You will be graded on the quality of your postings.

My post:

Lucy, be advised that sleeping in this class is unacceptable. You have missed some of the major concepts that you will have to become familiar with in order to complete your future assignments correctly. I will take this time to teach you a brief overview of the concepts for the sake of your grades and personal learning. If you wish to not pay attention, then please feel free to tell me so.
One of the things that was addressed in class was depreciated and its relation to accounting. What is depreciation? Depreciation simply is something that decreases value over a period of years. Depreciation can be applied to building and equipment, to name a few. In such case, the cash flow will subject to increase, while net worth decreases. However, one is to strive to match the expense of the asset with the income associated with the expense. According to Labyrinth (2006), “To calculate depreciation charges for each fixed asset, you must know how much the asset cost (including all costs necessary to make the asset operational), how long the asset can reasonably be expected to last before it needs to be replaced, and whether the item will have any salvage value at the end of its useful life.”
Different methods are used by different companies to record the assets involved. For example, a straight-line method can be used with the assumption that the depreciation applied to an asset decreases a certain percentage for each year that is used. Conversely, when using the declining method, the asset depreciation is much more in the beginning years. Depending on the asset involved and the company’s situation, and in attempt to match the expense of the asset with the income associated with the expense, a particular method is used (Horngren, Harrison & Bamber, 2005). Therefore, it is important handle these accounting principles correctly.
Amortization follows the same principle as that of depreciation: depreciating value of an asset. However, what is distinct is that in Amortization; the value is given to, for example, the trademarks which perhaps more valuable to a firm in the present and long run. In depreciation, the value is in something of physical from, like building and others. A great example as given in Investopedia (2006), “Think of amortization (the deduction of capital expenses) as a way to claim the decrease in value on your car every year. If you bought your car new for $20,000 and after the first year it is worth $17,000, theoretically, you could amortize the $3,000 for tax and financial purposes.” In calculating amortization, the initial cost of the intangible asset is divided by the estimated useful life of the intangible asset.
Since intangible and tangible assets go in correlation with these concepts, it is only right to conduct a comparison to provide you with an over all picture. Intangible assets are usually a physical item, whereas tangible assets are worth money to a particular business and it is not a physical substance. One example of an intangible asset is capital asset, and an example of a tangible asset is trademark and good will. Regardless their differences (intangible versus tangible assets), they are both recorded on a balance sheet.

  1. 👍 0
  2. 👎 0
  3. 👁 103

Respond to this Question

First Name

Your Response

Similar Questions

  1. To Devron

    Since you are a biochemist please look at the post below by C. I tried answering the question but I really don't understand the question. Perhaps you can help.

    asked by DrBob222 on January 18, 2015
  2. human service instructor feed back

    Hi Jean: You did a great job of answering the first part of the question. However can you look back over the DQ and answer the rest of the questions? Be sure to be thorough in you response. Thanks. I'm glad your instructor liked

    asked by jean on August 14, 2007
  3. Thanking tutors

    Hello my name is Essence I am in the fourth I want to say thank you to all the helpers answering all silly and meaningful questions and helping kids like me in every subject so I want to say thank you from me and everyone who

    asked by Essence loves math on January 30, 2016
  4. English

    Which of the following is a good test-taking strategy when answering an essay question? 1.(Think about what you want to say and create a brief bulleted list or organizer before you begin writing.) 2.Write as much as you can as

    asked by Help I need somebody not just anybody on January 20, 2017
  5. Chemistry

    Hello, I'm having some trouble getting started on this question: "Calculate the volume and mass required to make 0.1 M solutions of Propionic Acid (1.0 M) and Sodium Propanoate (96.06 g/mol)" I would normally not have trouble

    asked by Leo on March 3, 2015
  6. trumpet lily

    iam doing a project on a lily and i need to know if it reproduces asexually, sexually or both trumpet lily Your question has already been answered from your previous post. Please do not repeat the same question, since it detracts

    asked by jessie on March 18, 2007
  7. sciencie

    what are the two requirements of matter and can matter exist at absolute zero You just need to post a question once. Repeated posts will not get a quicker response, and they distract tutors from other posts that they could be

    asked by Chris on March 24, 2007
  8. history1301

    I need some History help! Its US History. OK first of all I would like to post the question I need help answering. I also would like to post another question that I have answered and see if it was the right answer that I came up

    asked by beth on December 6, 2009
  9. To Debela Duguma

    Your question tucked at the end of another post was probably lost. Post the complete question as a new post if you would like help.

    asked by MathMate on July 23, 2013
  10. AD Analysis (URGENT)

    I have to do an ad analysis of alcohol. And I've decided to use a GREY GOOSE VODKA ad. Here is one of the question I'm having trouble answering" What type of characters are portrayed in this advertisement. (ie. age, gender,

    asked by John on October 17, 2009
  11. about this site please read

    im trying to post something but it says I cant because youre not allowed to post internet addresses but I don't have any in my post please help. You likely have a www in the text. nope read it over and over .is that the only thing

    asked by Jon on April 24, 2007

More Similar Questions