Answer:
Define and explain two common types of receivables
Why does a XXXXXXXX depreciate
XXXXXXXXXXXX XXXXXXX XX XXXXX on the XXXXXXXX that XXXXX XXX-XXXXXXX XXXXXX XXX utilized by the XXXXXXX in XXXXXXX of generating revenue; XXXX XXXX XXXXXXXXXX be XXXX out. XXXX implies that XXXXX XX cost of generating income, XXXXX XXXXXX XX matched XXXXXXX the XXXXXX XXXXXXX XX a consequence XX XXXXX those fixed XXXXXX.
Under this XXXXXX, XXX XXXX XX a XXX-XXXXXXX XXXXX XX XXXXXXXXXXX XXXX XXX XXXXXX XXXX. XXX XXXXXXXXXXXX charge will be same every XXXX (unless an addition or disposal takes XXXXX). XXXX method XX XXXXXXXXXXXX is suitable XXX XXX XXXXXX which are expected to be used XXXXXX XXXX XXXXX useful XXXX.
= [XXXX XX XXXXX – XXXXXXXX value] / Useful XXXX (XXXXX)
Where:
Cost = [XXXXXXXX price + XXXXXX XXXXX]
= XXXXXXXXXXXX XXXX (%) × Net XXXX value (NBV)
Where: NBV = [XXXX – Accumulated depreciation].
XXXXX XXXXXXXXXX of this XXXXXX include sum XX years’ XXXXX XXXXXX.
The rationale of XXXXX this XXXXXX is based on the premise that useful life XX an XXXXX XXXXXXXXX XXXXX XXXXX XXXX of a product produced. This method is appropriate XXX the XXXXXX that are XXXXXXXX XX generate XXXX limited units of output.
Depreciation is calculated XX multiplying XXX cost of asset (net of XXXXXXXX value) with the proportion XX XXXXX XXXXXXXX in the current period against total units.
= [XXXX – XXXXXXXX value] × [XXXXX XXXXXXXX in a year/XXXXX XXXXX expected to XXXXXXX]
XXXXXXXXX XXXXXXXXX on XX-XXX-2015: $467,XXX
Units produced: 16,XXX (for method 03)
($XXX,000 - $17000) /05 XXXXX
= $XX,XXX per XXXXX
XXXXXXXX XXXXXXX method
= $116,750
XXXXX of XXXXXXXXXX XXXXXX
[$467,XXX - $17000] × [XX,000/100,000]
= $72,000
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