Accounting theory and practice, Volume 2 (of 3) : a textbook for colleges and…

Purchase Returns and Allowances Partial Payments Handling of Notes Payable Cash Discount on Purchases Modifications of System Summary of Operation and Advantages III FACTORY COSTS 49 Difference Between Factory and Financial Accounting Definitions of Terms Special Purposes of Cost Records Nature of Raw Materials and Supplies Accounting for Material Cost Direct and Indirect Labor Time-Keeping Records Pay-Roll Safeguarding the Pay-Roll Distribution of Labor Charges Expense Summary of Manufacturing Cost IV THE BALANCE SHEET 60 Business Methods under the Microscope The Reading of the Balance Sheet Definition Relation Between Balance Sheet and Trial Balance Form of Balance Sheet Purpose and Uses Types of Balance Sheet Origin of English Form of Balance Sheet Variation of English Form Balance Sheet Titles Grouping and Classification Arrangement of Groups Report and Account Forms Valuation Accounts Statutory Requirements as to Frequency of Balance Sheets Condensation of Information in the Balance Sheet Use of Supporting Schedules V GENERAL PRINCIPLES OF VALUATION 81 Content of the Balance Sheet Valuations for Rate Regulation Valuation for Sale and Purchase Other Kinds of Valuations Going Concern Valuation Kinds of Value Source of Data as to Values Cost Value the Usual Basis Definition of Capital and Revenue Expenditures Organization Expenses Definition of Replacements, Renewals, Maintenance, etc. Treatment of Renewal of Parts Treatment of Cost-Cutting Changes Asset Subject to Depreciation a Deferred Charge to Operations Authorization of Booking Capital Expenditures Repairs on Second-Hand Plant Construction Costs Distinction Between Capital and Revenue Expenditures Often Based on Opinion Main Groups of Asset Items Valuation of Liability Items Over- and Under-Valuation The Balance Sheet an Expression of Opinion VI DEPRECIATION—ASPECTS AND DEFINITIONS OF TERMS 99 Aspects of Depreciation Definitions Authoritative Opinions Why the Depreciation Factor Arises Actual or Absolute Depreciation Theoretical Depreciation Comparison of Actual and Theoretical Depreciation “Accounting” and “Fair” Depreciation Complete and Incomplete Depreciation Individual and Composite Depreciation Physical and Functional Depreciation Deferred Maintenance and Accrued Depreciation Attitude of the Law Decision of Supreme Court Recognition of the Depreciation Factor Distinction Between Repairs and Renewals Depreciation and Plant Efficiency Unit Efficiency Depreciation and Fluctuations in Market Value Distinction Between Depreciation and Depletion Effect on Different Kinds of Business VII DEPRECIATION—ITS CAUSES 120 Analysis of Causes Age as a Cause of Depreciation Wear and Tear of Use Functional Depreciation Inadequacy as a Factor Inadequacy Through Change of Policy Inadequacy Through Motives of Economy Inadequacy Due to Unforeseen Development Inadequacy Imposed from Without Obsolescence as a Cause Treatment of Obsolescence Contingent Depreciation Terminable Rights Effective Depreciation VIII DEPRECIATION—FACTORS OF RATE DETERMINATION 136 Fundamental Purpose of Depreciation Depreciation a Cost of Operation Complication of Short Fiscal Periods The Factor of Idle Time Depreciation a Means of Financing Danger of the Financing Viewpoint The Standardization of Depreciation Rates Effect of Local Conditions Factors in Determining Depreciation Rate Bases of Normal Rate Policies as to Repairs Depreciation Rate an Engineering Problem Attitude of Regulatory Bodies Methods of Handling Repairs IX DEPRECIATION—METHODS OF CALCULATING 150 Methods of Calculation Factors of Calculation Symbols to be Used