Question 1

Describe the accounting for intangible assets, including their acquisition, cost allocation, and accounts involved.

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Question 2

Explain the purpose of and method of depreciation for partial years.

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Question 3

Compare the different depreciation methods (straight-line, units-of-production, and double-declining-balance) with respect to the amounts of depreciation expense per period and the total depreciation over the life of the asset.

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Question 4

Explain how to calculate total asset turnover. Describe what it reveals about a company's financial condition, whether a higher or lower ratio is desirable, and how it is best applied for comparative purposes.

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Question 5

What are some of the variables that make a plant asset's useful life difficult to predict?

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Question 6

Explain the impact, if any, on depreciation when estimates that determine depreciation change.

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Question 7

Explain the difference between revenue expenditures and capital expenditures and how they are recorded in the accounting system.

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Question 8

Explain in detail how to compute each of the following depreciation methods: straight-line, units-of-production, and double-declining-balance.

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Question 9

Describe the accounting for natural resources, including their acquisition, cost allocation, and account titles.

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Question 10

How is the cost principle applied to plant asset acquisitions, including lump-sum purchases?

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Question 11

What are the general accounting procedures for recording asset disposals?

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Quiz 8: Accounting for Long-Term Assets