What are the cost of the book?
The cost of the book is the value of the asset listed in the balance sheet of the company. This is the original cost of minus factors such as amortization, depreciation and damage. The cost of the book can also be described as an accounting or supporting value.
The cost of the book becomes a factor in the company's balance sheet. It is not a record of the company's expenses and income, but rather its current value. This consists of assets and liabilities and effectively shows how much, if any, money would remain if the company was liquidated. The most important element is depreciation. This is the recognition of the fact that some assets may have less value for society or even end effectively worthless for society. Examples include technology that becomes outdated or machines that eventually wear out.
to take into account depreciation, society usually determines the lifetime of life and final value; This value can be zero or may be a specific number that the company expects to be able to be at the end of SSELL LIFE TO SELL ON ASSIGNMUM. For the purposes of balance sheet, the cost of the book for the asset is in proportion to the life of the life and final value each year. The exact method used for these calculations is often determined by both accounting and tax laws in the country.
When calculating the price of the book, two more factors are taken into account. The amortization is used for financial assets and takes into account both the decreasing balance, over time and the effects of inflation. Damage is usually a one -off change made in the value listed on the list of assets and is used when the company finds that it is significantly overpayed as an asset and must reflect it in its balance sheet.
usually, the cost of a book by a specific asset. This is contrary to the accounting value that can cover both a specific asset and the whole company. In the latter case, the calculation method is not always consistent: the accounting value for the company is always formed by the minus liability assets, but may include or exclude Goodwill and intangible assets. Goodwill is an attempt to appreciate relationships toTeré has built with suppliers and customers, while intangible assets include factors such as intellectual property and trade secrets.
Accounting value in a financial context should not be confused with the same phrase on the car market. Here, it refers to the new price of the model price or used vehicle in the reference book, such as Kelley Blue Book. This price can be used as a link and the starting point when negotiating the price for a particular vehicle.