Straight - Line
Double Declining - Balance
Units-Of-Activity
Capital Assets
We love Accounting
100
Another word for "residual" value and explain what it means !
What is salvage value & How much a fixed asset is worth at the end of its lease, or at the end of its useful life. EX: If you lease a car for three years, its residual value is how much it is worth after three years.
100
For this method you always start with the ___ ___ ____
What is : Net Book Value
100
Stage of Completion % = Value of Work Certified as complete / Total expected usage or production X 100
What is The formula to calculate the amortization under the Units-of-activity method.
100
1. Tangible (with physical substance) 2. Intangible (without physical substance) (BOTH)
What is Capital Assets For firms, a capital asset is an asset that has a useful life longer than one year and is not intended for sale during the normal course of business. For individuals, capital asset typically refers to anything the individual owns for personal or investment purposes. This excludes property held for sale in the normal course of business, money received or about to be received from the sale of that property, depreciable personal property used for business (such as rental property), protected creative works (such as copyrights on a book), and government publications purchased or received for free from the government.
100
The deduction of capital expenses over a specific period of time (usually over the asset's life). More specifically, this method measures the consumption of the value of intangible assets, such as a patent or a copyright.
What is Amortization
200
Equation to find the Amortization Expense value?
What is : Cost - Residual Value / # of useful years
200
When the amortization is at the highest highest value.
What is : When the asset is new, value slowly decreases over time.
200
Unit-of-Production
What is and alternative name for Units-of-Activity
200
Capital assets may be disposed of by ___, ___, or ___.
What is : Retirement, Sale, or Exchange.
200
Most common method of calculating amortization
What is Straight-Line method
300
Anything without physical substance that generates capital for a business or organization.
What is Intangible asset(s)
300
Double Declining balance for 33%
What is 66%
300
Amortization refers to wear and tear on valuable assets and is calculated in a number of different ways. An accurate estimation of depreciation is critical for calculating the true profitability of the firm
What is Advantages of having this method of calculation Amortization.
300
Is a stapler considered a capital asset ?
What is YES ! although the value is low, the life of a stapler is over a year, but then again it could be debatable as some companies would not want to depreciate a $10 (approx.) stapler. Not a large monetary value, so its easier to write it as an expense in the income statement.
300
BAT4M0
What is our COURSE CODE WHEW ACCOUNTING :))
400
You buy a new computer for your business costing approximately $5,000. You expect a salvage value of $200 selling parts when you dispose of it. In the past, your business has upgraded its hardware every three years, so you think this is a more realistic estimate of useful life, since you are apt to dispose of the computer at that time. Using straight - line method...calculate the amortization expense per year.
What is $1600
400
According to the ______________ of accounting, we should depreciate more of the asset's cost in early years to match the depreciation expense with the revenue earned from the use of the asset
What is Matching Principle
400
_____ depreciation is charged when the asset is idle for the whole period. (remains at same value, does no fluctuate)
What is Zero / 0 / none
400
They are physically extracted in operations. And they are replaceable only by an act of nature.
What is Natural Resources
400
Number of dollar signs on a classified balance sheet ?
What is 10
500
Accounting rules allow a maximum useful life of ___ ___ for computers.
What is : 5 years !
500
How do you get your (double) declining balance ratio ? using the LONG way. *HINT* 3 main steps.
What is : 1. cost - residual value = amort. cost 2. amort. cost / # of useful years = amort. exp. 3. Amort. Exp. / Amort. cost = rate **multiply rate by 2 to get the double ratio**
500
A coal mine was purchased by X Corporation for $16 million. It was estimated that the mine has capacity to produce 200,000 tones of coal. The company extracted 46,000 tones during its first year of operation. Calculated the depreciation.
What is $3.68 million Solution: Depreciation = (46,000/200,000) × $16 million - = $3.68 million
500
Certain agency that that allows taxpayers to deduct amortization expense when calculating taxable income. **Hint : usually happens in April**
What is The Canada Customs and Revenue Agency (CCRA)
500
Seucharan
What is Mrs. Kosik's maiden name
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