Sample Accounting Essays On Capital Assets

Homework Question on Lucas County General Capital Assets

  • Records of capital assets owned by Lucas County have never been maintained in a systematic manner. The auditor has recommended that an inventory be taken and that General Capital Assets accounts be established and maintained. The governing board agrees that it needs better capital asset control but has tentatively concluded that no action will be taken in this regard because the appraisal fee estimates provided by reputable appraisal firms far exceed the amount of resources available for such an undertaking.
  1. What suggestions or comments, if any, would you offer if your advice were sought by members of the board? Special Instructions:
  • Please check grammar and spelling.
  • Do not omit words from sentences!!
  • Do NOT DO this!!! Content of essay must be written in a clear, logical, and coherent manner.
  • Please use credible/scholarly sources.
  • Do not forget in-text citation as well as a reference page. VERY IMPORTANT.  Must use APA format.
  • Please address all aforementioned questions or requirements in paper.  Thank you. Note: I indicated only one source; however, the writer may choose more than that.

Homework Answer on Lucas County General Capital Assets

Assets, especially fixed assets are key resources of all businesses. Fixed assets embody main portions of the net worth of businesses captured on balance sheets. It is vital to record, maintain, and reconcile the accounts of fixed assets, failure to which there can be emergence of errors. Errors may lead to incorrect business valuation and inaccurate tax reporting. Such errors may potentially affect lenders, agencies, and investors.

It is essential to take an inventory and to establish and maintain general capital assets accounts as suggested by Lucas County’s editor. These processes are important as they give an essential internal control for financial reporting of the assets (Chambers & Rand, 2012).All businesses and companies require appropriate capital asset control mechanisms, as agreed upon by the governing board of Lucas County.

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The processes of taking an inventory, establishing and maintaining capital assets accounts may be costly but are vital for effective running of the business. However, the processes may encounter some drawbacks that may generate wrong information or wrong account balances. For example, fixed assets may be purchased in lump-sum e.g. where a building is purchased together with the land that it’s build upon (Chambers & Rand, 2012).