FAC1502 COMPREHENSIVE ANSWERS AND QUESTIONS SET A.pdf

FAC1502 COMPREHENSIVE ANSWERS AND
QUESTIONS SET A+
✔✔current assets - ✔✔cash and other assets expected to be exchanged for cash or
consumed within a year

✔✔Current Liabilities - ✔✔Obligations due within one year.

✔✔Non-current liabilities - ✔✔Long-term debts owed by the business

✔✔Debtors Account - ✔✔Account tracking amounts owed by customers.

✔✔residual value - ✔✔the expected value of a depreciable asset at the end of its useful
life

✔✔straight-line method - ✔✔Allocates an equal amount of depreciation to each year of
the asset's service life

✔✔Diminishing balance method - ✔✔Depreciation method reducing asset value
annually.

✔✔production-unit method of depreciation - ✔✔Annual depreciation expense based on
the amount of production expected from a plant asset

✔✔Depreciation Schedule - ✔✔the record detailing the amounts and timing of
depreciation for all fixed asset categories except land and any construction-in-progress
accounts

✔✔machinery (at cost) - ✔✔debit + / credit -

✔✔depreciation (machinery) - ✔✔debit + / credit -

✔✔accumulated depreciation: machinery - ✔✔credit + / debit (balance c/d)