Depreciation in Theory And Practice
Depreciation in Theory And Practice
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In our eReader you can find the full English version of the book. Read Depreciation in Theory And Practice Online - link to read the book on full screen. Our eReader also allows you to upload and read Pdf, Txt, ePub and fb2 books. In the Mini eReder on the page below you can quickly view all pages of the book - Read Book Depreciation in Theory And Practice
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If this reserve has been specially tabulated and set aside as a fund, its exist- ence will not be questioned. But instead of being placed aside as a fund it might have been employed for either of two purposes, viz. , (a) to liquidate bonded or other indebtedness of the company or (b) to make extensions to the plant.
If bonded or other indebtedness is liquidated, then it seems clear that the investment has been diminished by that amount, and consequently expenses in the form of interest charges ...have been diminished. Consequently, a smaller return would be adequate to provide a suitable return on the remaining investment.
20 EARL A. SALIERS On the other hand, if the fund is expended in the making of extensions, the depreciation of the original plant has been made good by the extensions paid for out of the depreciation fund. In this case the fund is retained in the business, and therefore the return ought not to be diminished.
Thus it is seen how important is sound accounting procedure when viewed from the standpoint of finance and governmental control.
What to read after Depreciation in Theory And Practice?
You can find similar books in the "Read Also" column, or choose other free books by Earl Adolphus Saliers to read onlineMoreLess
To quickly assess the difficulty of the text, read a short excerpt:
If this reserve has been specially tabulated and set aside as a fund, its exist- ence will not be questioned. But instead of being placed aside as a fund it might have been employed for either of two purposes, viz. , (a) to liquidate bonded or other indebtedness of the company or (b) to make extensions to the plant.
If bonded or other indebtedness is liquidated, then it seems clear that the investment has been diminished by that amount, and consequently expenses in the form of interest charges ...have been diminished. Consequently, a smaller return would be adequate to provide a suitable return on the remaining investment.
20 EARL A. SALIERS On the other hand, if the fund is expended in the making of extensions, the depreciation of the original plant has been made good by the extensions paid for out of the depreciation fund. In this case the fund is retained in the business, and therefore the return ought not to be diminished.
Thus it is seen how important is sound accounting procedure when viewed from the standpoint of finance and governmental control.
What to read after Depreciation in Theory And Practice?
You can find similar books in the "Read Also" column, or choose other free books by Earl Adolphus Saliers to read onlineMoreLess
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