A
= (Cost - Salvage Value) / Years
What is the straight-line depreciation method?
Relevant, reliable, comparable
What is the characteristics that a Financial Statement should have?
Matching Principle
What is the principle we use to record revenues and expenses that occur in the same period.
Contra Asset Account
What is "Accumulated Depreciation"?
Half-year rule
What is the rule that claims 6mons of depreciation for the first year, regardless of when the asset was purchased?
Property Plant Equipment
Rent, Insurance
What are common prepaid expenses?
= undepreciated amount x fixed rate
What is declining balance method?
At the end of every fiscal period at which we are preparing a worksheet and financial statements
When do we determine and post adjusting entries?
Year 1 - Depreciation Expense: $2,400, Year 2 - Depreciation Expense: $2,400, Year 3 - Depreciation Expense: $2,400
What is straight-line depreciation method?
Cash, Accounts Receivable, Prepaid Insurance, Supplies
Name some current assets, that are not depreciated
The worksheet that has adjustments incorporated
What is the 8-column worksheet?
Prepaid Expenses, Depreciation, Late Purchase Invoices, Supplies
What are types of Adjusting Entries?
Undepreciated amount - $45,000, rate is 20%, Depreciaton expense for the first year is $________.
Amortization
What is another name for depreciation?
Counted at year end and adjusted to expense
What are office supplies?
Useful life to the business
How do we determine the number of years of depreciation in the straight line method?"
Dr. Unearned Revenue Cr. Fees Earned
How do you record for overstatement of unearned revenue?
Revenue Recognition, Matching Principle, Cost Principle, Principle of Conservatism
What is the 4 principles of adjusting entries?