ACC/422 Week 3 DQ 1

What is the purpose of depreciation?

Does the book value of a fixed asset (cost minus accumulated depreciation) communicate to a user what the asset is worth? Explain why or why not.

Should the financial statements reflect the value of fixed assets? Explain why or why not.

ACC/422 Week 3 DQ 2

What is an intangible asset?

Should all intangible assets be subject to amortization? Explain why or why not. Why are some intangible assets not amortized?

What is the implication to the financial statements?

ACC/422 Week 3 DQ 3

What are the different methods used to calculate depreciation?

How does a company decide which method it should utilize?

How does its choice affect the financial statements?

Should companies standardize the method of depreciation to enhance comparability? Explain your answer.