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Essay

accounting

Essay specific features

 

Issue:

Business

 

Written by:

Kirk L

 

Date added:

July 31, 2012

 

Level:

University

 

Grade:

A

 

No of pages / words:

6 / 1470

 

Was viewed:

5744 times

 

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Essay content:

It would not make sense to maintain the same lease expense during which time the equipment is not generating revenue; doing so would violate the matching principle. The best way to do this is to allocate the depreciation for the equipment to later periods when the equipment will be up and running. For instance, if we had a $1000 expense each month for equipment depreciation, for the 3 months and 2 weeks the machines will be down, we would readjust the $3500 to the remaining time of our lease...
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For instance, if we had a $1000 expense each month for equipment depreciation, for the 3 months and 2 weeks the machines will be down, we would readjust the $3500 to the remaining time of our lease. If there were 10 months on the lease after that time, we could add $350 to each of the remaining months...
displayed 300 characters

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