Chicago Week 2 Mini Case

It is a company policy to maintain a complete, accurate, understandable, and high quality records. The company record are to be retained for the period of their immediate use, unless a longer retention period is needed for reference, legal, contractual, and regulatory requirements Records that have satisfied their required period of retention and no longer required, should be destroyed.

Classify each of the items as an asset, liability; revenue; or expense from the company's viewpoint. Also indicate the normal account balance of each item.

The company also provides the following disclosure relating to the useful lives of its depreciable assets

Assets are things that a company owns that have value. This typically means they can either be sold or used by the company to make products or provide services that can be sold. Assets include physical property, such as plants, trucks, equipment and inventory. It also includes things that can’t be touched but nevertheless exist and have value, such as

Your company has goods primarily held for resale. You have been asked whether or not they are considered nonmonetary assets.

| Taxpayers are allowed to offset net short-term capital losses with net long-term capital gains.Answer

Assets that are constructed or otherwise produced for an entity’s own use, including assets constructed or produced for the entity by others for which deposits or progress payments have been made.

It is important to report their capital assets as similarly to business in the government-wide statements, but governments need to improve on providing correct and adequate information for the government leaders. GASB No. 34 requires capital assets report, and it needs to be reported in the applicable governmental or business-type activities columns in the government-wide financial statements. According to Hegar (2016), capital assets are those defined by the state as assets with an initial cost meeting the thresholds

7. Debt to capitalization = Long-term Debt in Balance Sheet / Long term debt + Net Assets in

It is wrong to take depreciation on business expenses and to claim it as assets. Operating expenses would be distorted.

One of these is with regards to goodwill and intangible assets with identifiable useful lives.

d. Did the users have enough skills to operate the system? e. Where and how would the asset register be kept and updated? 1.6 JUSTIFICATION OF THE STUDY. The proposed study was recommended as it was of paramount importance to organizations which had accepted and undertook the information technology era into their businesses to have good and reliable ITAMS. The previous excel spreadsheets which were used in recording assets were highly prone to errors and presented a lot of paperwork, which required large storage space, and thus inappropriate and inefficient for the organization to achieve optimum performance.

According to this concept the asset is recorded in the books of accounts at the price paid for it and not at its market value. For example: if a business entity purchases a building valued at $15 million from a friend for $12 million, this asset would be recorded at $12 million and not at $ 15 million, because for the business entity the cost was $12 million and not $15 million.

Nearly everything that you own, whether it is for investment purposes or personal use, is a capital asset. Capital assets are stocks or bonds held for investment purposes, land, machinery, etc. When an individual sells a capital asset, the difference between the asset’s purchase price and the amount that it is sold for, is either a capital gain, which is in the case if the selling price exceeds the purchase price, or a capital loss, where the purchase price exceeds the selling price.

• Self-constructed assets are to be capitalised at costs that are specifically related to the asset and those which are allocable to the specific asset.