Accounting test 3
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We record assets at their cost.
How are natural resources have loss through...
depletion, not depreciation.
Is land or land improvements and buildings depreciated?
Can't depreciate land, can depreciate land improvements. and buildings.
Capital Expenditure vs. Revenue Expenditure
Capital Expenditure- Debited to asset, pay to get something operating. (training, installation, etc...)
Revenue Expenditure- Debited to repairs/maintenance. Used to keep something operating, not initial start-up.
Straight-line Depreciation equation
Double-Declining Balance Equation
Multiply an assets declining book value by twice the straight-line depreciation value.
True or false
Intangible assets are depreciated.
False. They are amortized
Record a capital expenditure as...
a debit on assets.
Gain or loss =
sale cost - book value
_________ is used to compute depletion.
_________ is used to compute amortization
units of production
________ is recorded as an asset for acquiring another company.
Current liabilities are paid...
within 12 months
- -accounts payable
- -sales tax payable
- -current portion of long-term notes payable
- -unearned revenue
- -short-term notes payable
Is using a repair to increase useful life a capital or revenue expenditure?
How does issuing a discount affect interest?
Assets - Liabilities
Horizontal analysis/trend analysis-
Comparing trends year to year
comparing with industry or companies in industry
What would you like to do?
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