This historic book may have numerous typos and missing text. Purchasers can download a free scanned copy of the original book (without typos) from the publisher. Not indexed. Not illustrated. 1910 Excerpt: ...through his neglect of accounting principles. This sort of case is of frequent occurrence, though the names by which the property is called may differ widely. If we have an impression, for instance, that we are keeping up our machinery by repairs and replacements and each year charge to Maintenance what seems to us a ...
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This historic book may have numerous typos and missing text. Purchasers can download a free scanned copy of the original book (without typos) from the publisher. Not indexed. Not illustrated. 1910 Excerpt: ...through his neglect of accounting principles. This sort of case is of frequent occurrence, though the names by which the property is called may differ widely. If we have an impression, for instance, that we are keeping up our machinery by repairs and replacements and each year charge to Maintenance what seems to us a reasonable figure for such repairs and replacements, we may find suddenly that machinery standing on our books at a valuation of $50,000 is worth only $10,000. This error in judgment may have arisen not at all from a failure to spend enough in repairs and replacements, but from a neglect to realize that machinery may sometimes become worthless though it is quite as efficient in production as it was the day it was new. Many times in the last hundred years machinery as good as could be made has been kept equally good so far as its own production is concerned, and yet has become worthless because other machinery has been invented and put upon the market to do either the same work at a cost so low that the old machinery could not compete with it in price, or to do work so far superior that the old machinery could not compete with it in quality at the old price. Here, then, was no failure of calculation in keeping up the property; there was only failure to recognize the force of change in business operations. Allowance should always be made, in any business using machinery, for possible supplanting of property before it has lost its original efficiency--for what is commonly called "obsolescence," or growing old. In some lines of business the average period of obsolescence is perhaps five years, even though the machinery itself might last for twenty years. Accounting is good only when it represents on the books all the facts; and, therefore...
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Add this copy of Accounting and Auditing to cart. $23.14, new condition, Sold by Ingram Customer Returns Center rated 5.0 out of 5 stars, ships from NV, USA, published 2022 by Legare Street Press.
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