Questions from Financial Reporting

Q: Describe depreciation, amortization, and depletion. How do they differ

Describe depreciation, amortization, and depletion. How do they differ?

Q: What are the three factors usually considered when computing depreciation?

What are the three factors usually considered when computing depreciation?

Q: An accelerated system of depreciation is often used for income tax purposes

An accelerated system of depreciation is often used for income tax purposes but not for financial reporting. Why?

Q: Which depreciation method will result in the most depreciation over the life

Which depreciation method will result in the most depreciation over the life of an asset?

Q: Should depreciation be recognized on a building in a year in which

Should depreciation be recognized on a building in a year in which the cost of replacing the building rises? Explain

Q: Describe the account Accumulated Other Comprehensive Income.

Describe the account Accumulated Other Comprehensive Income.

Q: Describe donated capital

Describe donated capital

Q: List the statement on which each of the following items may appear

List the statement on which each of the following items may appear. Choose from (A) income statement, (B) balance sheet, or (C) neither. a. Net income b. Cost of goods sold c. Gross profit d. Reta...

Q: Assume that a city donated land to a company. What accounts

Assume that a city donated land to a company. What accounts would be affected by this donation, and what would be the value?

Q: Describe the two types of subsequent events under GAAP.

Describe the two types of subsequent events under GAAP.