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Fixed Asset Accounting 1 0 Purpose 2 0 Policy Virginia Tech's Policies Form

Fixed Asset Accounting 1 0 Purpose 2 0 Policy Virginia Tech's Policies Form

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hi in this video you will learn about accounting for fixed assets and how it impacts both the income statement and balance sheet fixed assets are assets that are purchased by an organization for long term use that help generate income examples of fixed assets are land purchased for investment or use buildings factories machinery and equipment fixed assets are also referred to as non current assets as these assets will not or should not be converted into cash within the next 12 months fixed assets appear in the financial records at their net book value which is its original cost minus accumulated depreciation because of ongoing depreciation the net book value of an asset is always decline these fixed assets are shown in the financial statements in two ways one historical cost once a fixed asset is purchased it has to be recorded in our financial records the purchase price paid to the supplier has to be added to any import duties other taxes paid as well as any expenses costs paid to bri

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