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Week 2 Discussion ACCII

  1. What should companies consider before choosing a method of expensing long-lived-assets cost?
  2. What are some benefits and risk of various depreciation methods on a company’s net income?
  3. Since expenses impact net income, how should management decide which accounting method is suitable for valuing their long-lived assets?
  4. What is the difference between a capital expenditure and a revenue expenditure?  What are some examples of each?  How are they treated differently in the financial statements?
  5. Recognize long-lived assets, valuation, and disposal.
  6. Apply methods of expensing plant assets cost within the business industry.
  7. Discuss management decision making challenges for long-lived assets
  8. Examine methods for analyzing plant assets.

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University of Nairobi