Terms & Concepts
These are long-lived assets used in the operation of a business for more than one year.
What are Plant Assets?
To find the "Amount to be Depreciated," you subtract this value from the original cost.
Disposal value
This is the account that is always Debited when recording a year-end depreciation adjustment.
What is Depreciation Expense?
True or False: If an asset's Book Value is $0, the business must throw it away.
False
Cillian Murphy plays a 1900s mob boss in Birmingham, England in which streaming series?
Peaky blinders
This accounting principle requires businesses to spread the cost of an asset over the years it helps earn revenue.
What is the Matching Principle?
A $10,000 computer has a $1,000 disposal value and a 3-year life. This is the annual depreciation expense.
What is $3,000? ($9,000 / 3)
This is the account that is always Credited when recording a year-end depreciation adjustment.
What is Accumulated Depreciation?
On which financial statement would you find "Depreciation Expense"?
What is the Income Statement?
Richard Hatch is the very first winner of which reality TV show?
surivor
This specific plant asset is never depreciated because its usefulness to the business never ends.
Land
If an asset's annual depreciation is $1,200, this is the expense recorded if it was owned for only 1 month.
What is $100?
At the start of a new fiscal year, this specific account will always have a zero balance.
What is Depreciation Expense? (Temporary account)
On which financial statement would you find "Accumulated Depreciation"?
What is the Balance Sheet?
What 1994 Quentin Tarantino movie stars John Travolta and Samuel L. Jackson as hitmen?
pulp fiction
This term refers to the original cost of a plant asset minus its accumulated depreciation.
What is Book Value?
An asset cost $20,000 and has $12,000 in Accumulated Depreciation. This is its current Book Value.
What is $8,000?
This internal document lists each asset, its cost, life, and the current year's expense to help prepare the adjusting entry.
What is a Depreciation Summary?
If a business forgets to record depreciation for the year, their Net Income will be reported as too high, which is called this
Overstated
This actor notably starred in the TV sitcoms “How I Met Your Mother” and “Doogie Howser, M.D.”
neil Patrick harris
This type of account (like Accumulated Depreciation) has a credit balance and is used to reduce the value of a related asset account.
What is a Contra Asset account?
A truck bought on October 1st has an annual depreciation of $4,000. This is the depreciation expense for the first partial year.
What is $1,000? ($4,000 / 12 * 3 months)
This is the effect on the Total Assets of a company when a depreciation adjustment is recorded.
Decrease
Why is depreciation considered an "allocation of cost" rather than a "valuation of the asset"?
Because it focuses on matching the expense to revenue, not on what the asset could be sold for today.
“The Da Vinci Code” opens with a murder in which famous museum?
the lourve