rue and fair profit of any business can only be determined after charging depreciation because it is an expense which is important for taxation purposes. But many analysts think that depreciation is not that much necessary for the business because it reduces profit while some businesses think that it is necessary because of tax benefits.What do you think? Is depreciation an important treatment for every business? How will you compare the importance of depreciation for a manufacturing organization and for a Service organization? Which method is suitable for these organizations- straight line method OR written down value method? Explain.
rue and fair profit of any business can only be determined after charging depreciation because it is an expense which is important for taxation purposes. But many analysts think that depreciation is not that much necessary for the business because it reduces profit while some businesses think that it is necessary because of tax benefits.What do you think? Is depreciation an important treatment for every business? How will you compare the importance of depreciation for a manufacturing organization and for a Service organization? Which method is suitable for these organizations- straight line method OR written down value method? Explain.
Financial Accounting Intro Concepts Meth/Uses
14th Edition
ISBN:9781285595047
Author:Weil
Publisher:Weil
Chapter15: Shareholders’ Equity: Capital Contributions And Distributions
Section: Chapter Questions
Problem 9Q
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Question
True and fair profit of any business can only be determined after charging
because it is an expense which is important for
that depreciation is not that much necessary for the business because it reduces profit while
some businesses think that it is necessary because of tax benefits.What do you think? Is
depreciation an important treatment for every business? How will you compare the
importance of depreciation for a manufacturing organization and for a Service organization?
Which method is suitable for these organizations-
value method? Explain.
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