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    Choice of depreciation method; current versus long term liability

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    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?

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    https://brainmass.com/business/accounting-for-liabilities/choice-depreciation-method-current-versus-long-term-liability-417521

    Solution Preview

    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 ...

    Solution Summary

    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.

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