11-28-2004, 08:12 PM
hi PROBLEM CREATOR
suggested replies are as follows
1 yaar if u differentiate b/w asset & capital then you can easily understand the real meaning of both words ASSETS are those resources in which an enterprise gains an economic benefit in future which is necessary to run for the business where as CAPITAL is the investment of the enterprice which is necessary for the development of business.
2 Interesting. If u talking about where the reducing balance method is appropriate and where straight line is adequate then i like to say that " where the asset's life are not compatible with the asset & there are a huge amount of uncertainities between the asset and its life then we use REDUCING BALANCE METHOD like a computer software because we do not know about the assets expected life then how much time period will be taken to finish the life of assets but reducing balance method are dependent on the appropriate percentage, means we must have to decide these percentage of assets according to the relevent environment and other factors which may influence the assets life. As far as STRAIGHT line is concerned we use that method where we know about the real expected life of assets like BUILDING we know that building have a useful economic life is 50 yrs(according to the situation of building,but 50 is ideal) ,similarly MAJOR PLANTS of assets we know that the expected life of that plant is 20 yrs.
3 I think its investmens like CAPITAL in nature.
but yaar PROBLEM CREATOR this is publicly available forum. So plz you should avoid this kind of discussion.
ASIF ALI
suggested replies are as follows
1 yaar if u differentiate b/w asset & capital then you can easily understand the real meaning of both words ASSETS are those resources in which an enterprise gains an economic benefit in future which is necessary to run for the business where as CAPITAL is the investment of the enterprice which is necessary for the development of business.
2 Interesting. If u talking about where the reducing balance method is appropriate and where straight line is adequate then i like to say that " where the asset's life are not compatible with the asset & there are a huge amount of uncertainities between the asset and its life then we use REDUCING BALANCE METHOD like a computer software because we do not know about the assets expected life then how much time period will be taken to finish the life of assets but reducing balance method are dependent on the appropriate percentage, means we must have to decide these percentage of assets according to the relevent environment and other factors which may influence the assets life. As far as STRAIGHT line is concerned we use that method where we know about the real expected life of assets like BUILDING we know that building have a useful economic life is 50 yrs(according to the situation of building,but 50 is ideal) ,similarly MAJOR PLANTS of assets we know that the expected life of that plant is 20 yrs.
3 I think its investmens like CAPITAL in nature.
but yaar PROBLEM CREATOR this is publicly available forum. So plz you should avoid this kind of discussion.
ASIF ALI