Pepsi

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Title: Pepsi

Essay Details:

Subject: English

Author: Emily P

Date: March 14, 2013

Level: University

Grade: B

Length: 4 / 985

Essay text:

double entry would be 1.5 m cash received for asset Reducing balance Method Here a fixed percentage is used each year eg 50% but don’t use the residual value of the asset. If using reducing blance the early depreciation is a lot bigger than I nlater years as it’s a percentage - lower profits as costs higher - straight line most common What happens if you chose a longer life for the asset – say 5 instead of 3 years so depreceiation is 1.8m per year. So increased profit in first 3 years but continuing to pay in the last 2 years Some countries have culture of lower depreciation, lower profits, Amortisation Science of spreading cost on an intangible asset...

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