Finance and Accounting for NonFinancial Managers, 3rd Edition

8

Managing Long-Term Assets

Learning Objectives

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.

OVERVIEW

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 ...