New and additional ventures

In addition to that, another section of the statement of the monetary flow illustrates the ventures that the business has acquired during the annual report. New and additional ventures signify the growth of the production and distributing capability of the business, as well as its improvements and enhancements. Organizing long term assets or removing a key component of the business can create good or bad effects, depends on what is influencing the said actions. investasi emas

Some companies will dispose some of its predetermined assets on a yearly basis upon reaching the limit of their usefulness because they will become more of a liability than an asset. These predetermined assets are either disposed or put on the market, or in most cases, traded for newer predetermined assets. The appraisal of the fixed assets or predetermined assets that is at the end of its usefulness is called the fixed assets’ “salvage value”. The profits of the fixed assets are accounted as a source of money in the “investing activities” segment of the statement of the business’ monetary flow. The proceeds of these fixed assets are generally diminutive in quantity.

 

Leave A Comment