Watch the "Ch. 9: Overview with Paul Kimmel" video located in the Week 2 Video Assignments in WileyPLUS.
Consider the following as you view:
Companies spend thousands of dollars investing in long-lived assets. In accounting, we commonly referr to these asset types as property plant and equipment. In this video, Paul Kimmel, the co-author of your text, shares facts companies must consider related to the long-lived assets and sets the tone for what's ahead in Ch. 9.
Keep in mind long-lived assets are used in business operations to generate revenue. These assets decline in their service life overtime. Therefore, businesses must expense their cost over its estimated useful life. Since expenses impact net income, how should management decide which accounting method is suitable for valuing their long-lived assets?