Questions from Financial Accounting

Q: In computing depreciation, three values must be known or estimated;

In computing depreciation, three values must be known or estimated; identify and explain the nature of each.

Q: The estimated useful life and residual value of a long-lived

The estimated useful life and residual value of a long-lived asset relate to the current owner or user rather than all potential users. Explain this statement.

Q: What type of depreciation expense pattern is used under each of the

What type of depreciation expense pattern is used under each of the following methods and when is its use appropriate? a. The straight-line method. b. The units-of-production method. c. The double-dec...

Q: Over what period should an addition to an existing long-lived

Over what period should an addition to an existing long-lived asset be depreciated? Explain.

Q: Pool Corporation, Inc., is the world’s largest wholesale distributor of

Pool Corporation, Inc., is the world’s largest wholesale distributor of swimming pool supplies and equipment. It is a publicly traded corporation that trades on the NASDAQ exchange. The majority of Po...

Q: Define accrued liability. What is an example of an accrued liability

Define accrued liability. What is an example of an accrued liability?

Q: When equipment is sold for more than net book value, how

When equipment is sold for more than net book value, how is the transaction recorded? For less than net book value? What is net book value?

Q: Define intangible asset. What period should be used to amortize an

Define intangible asset. What period should be used to amortize an intangible asset with a definite life?

Q: Define goodwill. When is it appropriate to record goodwill as an

Define goodwill. When is it appropriate to record goodwill as an intangible asset?

Q: Why is depreciation expense added to net income (indirect method)

Why is depreciation expense added to net income (indirect method) on the statement of cash flows?