Discussion
1. What should companies consider before choosing a method of expensing long-lived-assets cost?
2. What are some benefits and risk of various depreciation methods on a company's net income?
3. Since expenses impact net income, how should management decide which accounting method is suitable for valuing their long-lived assets?
4. What is the difference between a capital expenditure and a revenue expenditure? What are some examples of each? How are they treated differently in the financial statements?
5. Recognize long-lived assets, valuation, and disposal.
6. Apply methods of expensing plant assets cost within the business industry.
7. Discuss management decision making challenges for long-lived assets
8. Examine methods for analyzing plant assets.