By the end of this chapter, you should be able to:
• Distinguish between long-term and short-term assets.
• Explain how depreciation relates to the valuation of fixed assets on the Balance Sheet.
• Identify those investments that may adversely affect financial performance.
Long-term assets are the productive assets of a business. They are generally more expensive and complex than short-term assets and require several levels of approval before acquisition. Their management comes under the scrutiny of senior management and the operating manager needs to understand how performance ...