Depreciation
What does depreciation mean?
Go down in value.
Where in the accounting equation does inventory fall?
Asset
What is amertization?
Paying something off over time with interest.
Whats FIFO?
first in first out
What grade am i in?
11
How many types of depreciation did we learn?
3
Where in the accounting equation do stocks fall?
Owners Equity
How do you find the monthly interest rate?
divide the yearly interest by 12
Whats LIFO?
Last in first out
What sport do i play?
Football
What depreciation type goes down in value linearly?
Strait line depreciation.
Where in the Accounting Equation does Depreciation Expense fall?
Assets
What is the principle of a payment?
The money that goes to paying the item off rather than the interest.
The average of your products costs.
Whats my football number?
22
Whats the equation for strait-line depreciation?
current value minus salvage value divided by the useful life.
Where in the accounting equation does debt fall?
Liabilities
How do you find what amount of a payment is interest?
subtract the principle from the payment.
Explain why FIFO is useful.
When you have items that can spoil or turn bad youll want to get rid of them when you can actually sell them.
Math
Whats the equation for Double Declining Balance?
100% divided by useful life all times 2
Where in the equation does revenue fall?
Owners Equity.
How do you find the interest on a payment?
Multiply the amount of money remaining by the monthly interest rate.
Explain how LIFO i useful.
When the newer items are nicer and more advanced youll sell the latest technology or trends before the older items
Whats my middle name?
Edmund