1. What factors should a company consider when selecting a depreciation method?
2. Why would you say is it important to separate current liabilities from long-term liabilities?© BrainMass Inc. brainmass.com March 4, 2021, 11:22 pm ad1c9bdddf
What factors should a company consider when selecting a depreciation method?
The factors would be typically cost/benefit, reflective of the asset, and/or income management related. Depreciation calculations can be simple (straight-line) or complicated (units of production). Most companies choose straight line, not because it best matches the asset's decline in usefulness or gives them a particular budget or profit outcome, but because it is easy to compute and easy to ...
Your tutorial is 266 words and gives you three factors that may guide your depreciation decision and a reason that current liabilities need to be segregated from long term ones.