Valuation Approaches to Accounting

Scenario J&J Enterprises is formed on December 31, 2000. At that point it has one asset costing $2,487. The asset has a three-year life with no salvage value and is expected to generate cash flows of $1,000 on December 31, in the years 2001, 2002, and 2003. Actual results are the same as planned. Depreciation is the firm's only expense. All income is to be distributed as dividends on the three dates mentioned. Other information includes: * The price index stands …

…round are the same independent from the culture. Science is independent from perception or bias, therefore usefulness which is determined by values and perceptions seems to be a cultural notion. References: Merriam-Webster. (2006). Merriam-Webster Online Dictionary: utility. Retrieved Jan 07, 2006, from Merriam-Webster OnLine: http://www.merriamwebster.com/dictionary/utility Wolk, H. I., Dodd, J. L., & Tearney, M. G. (2004). Accounting Theory: Conceptual Issues in a Political and Economic Environment (6e). Mason, Ohio: Thomson Learning - South-Western.