A Discussion of the depreciation, prevision for bad debt and stock valuation, and an explanation of each single point happened in them concerned with the accounting will be examined in this assignment.

... Introduction: A Discussion of the depreciation, prevision for bad debt and stock valuation, and an explanation of each single point happened in them concerned with the accounting will be examined in this assignment. Depreciation methods: Depreciation is generally computed using one of the following methods: 1. strait line 2. units of activity 3. declining balance Each method is acceptable under generally accepted accounting principles. The objective is to select the method that best measure the asset's contribution to revenue over its useful life. Depreciation affects the balance sheet through accumulated depreciation and income statement through depreciation expense. Strait line method: Depreciation is the same for each year of the asset's useful life, in order to compute the depreciation expense its necessary to determine the depreciable cost which is the cost of asset less its salvage value then divided by the assets useful life to determine depreciation expense. The book value in the end of the

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