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Business Accounting And Finance

   

Added on  2019-11-26

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Running head: BUSINESS ACCOUNTING AND FINANCEBusiness accounting and ethicsName of the studentNam of the universityAuthor note
Business Accounting And Finance_1

1BUSINESS ACCOUNTING AND FINANCETable of ContentsQuestion 1..................................................................................................................................21.1 Treatment of accumulated depreciation...........................................................................21.2 Treatment of capitalization..............................................................................................21.3 Methods of inventory.......................................................................................................2Question 4..................................................................................................................................41.Financial reports and their uses.......................................................................................41.Importance of cash flow and profits................................................................................42.Ethical issues with the ABC Learning case study...........................................................4Question 7..................................................................................................................................5Accounting and impression management..............................................................................5Digital dashboard...................................................................................................................5Reference....................................................................................................................................7
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2BUSINESS ACCOUNTING AND FINANCEQuestion 11.1 Treatment of accumulated depreciationThe total depreciation with regard to any asset is regarded as the accumulateddepreciation and the accumulated depreciation covers the entire useful life of the asset. It is aclear fact that the amount of depreciation is collected to replace the asset in future(Henderson et al., 2015). Collection of cash that is regarded as depreciation is another way ofminimizing the burden of spending large amount at a time for the asset’s replacement.1.2 Treatment of capitalization As the addition towards any property or fixed asset is not considered as expensesrather it is considered as restructuring or improvement, capitalization is generally notregarded as the the expenses. For instance, depreciation money is accumulated to replace theasset in future, therefore will not be treated as expense rather, it will be regarded as aninvestment.1.3 Methods of inventoryLIFO (Last-in-first-out) – As per LIFO, the goods that are purchased last are sold firstFIFO (First-in-first-out) – As per FOFO, the goods that are purchased first are soldfirst (Zhang et al., 2014).Specific identification – as per the specific identification method of inventory actualcost for the identifiable unit of product is consideredWeighted average – as per this method, cost of all purchased products are consideredto sell the productExamples of different methods of inventory
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