1. Concepts of income Intermediate Accounting 4 The Income Statement and Income Recognition Capital Maintenance Concept Under this concept, corporate income for a period of time is the amount that may be paid to stockholders during that period and still enable the corporation to be as well off at the end of the period as it was at the beginning
Intermediate Accounting 8 Property, Plant And Equipment I. Classification as property, plant and equipment To be included in the property, plant, and equipment category, an asset must have three characteristics:
There is generally a higher degree of uncertainty regarding the future benefits that may be derived. Their value is subject to wider fluctuations because it may depend to a considerable extent on competitive conditions
1. Reasons for Issuance of LongTerm Liabilities Debt financing may be the only availablesource of funds. Debt financing may have a lower cost. Debt financing offers an income taxadvantage. The voting privilege is not shared. Debt financing offers the opportunity forleverage