AAMI Accounting 2 Exam Questions and Answers 100% Solved| Latest Update Graded A+
Specific Identification -Specified identity price/cost of item you sell.
-Most accurate method of inventory valuation
Weighted Average Total cost of goods divided by Total unit
Payroll tax difference between net pay and gross pay and what owner has to match
Depreciation periodic a location of the cost of assets
Depletion allocation of the cost of natural resources such as minerals
Amortization allocation of the cost of intangible assets, such as patents, are transferred to
expense through amortization
Capitalized Cost -Cost recorded as part of an asset's cost and depreciated over an asset's
useful life
- Added to the original cost
Straight-Line Method -method of computing the amount of depreciation expense
-Same amount of depreciation is recorded for each year
Acquisition Cost-Net Salvage Value
divided by Useful Life In Years Annual deprecation
Entry for depreciation Dr. Depreciation expense
Cr. Accumulated Depreciation
, Accumulated Depreciation is a contra account used to record annual depreciation
The entry to record annual depletion & amortization expense the same as the entry to
record Depreciation
Presentation on Financial statements a. Bldg (asset)
b. (Less) accumulated depreciation
c. = Book value
The value that the asset will have at end of life
d. Book Value: BV = assets - accumulated depreciation
e. Salvage Value: SV= predicated value of asset at end of useful life
# of methods of depreciation (4)
Book Value BV = assets - accumulated depreciation
Salvage Value: SV= predicated value of asset at end of useful life
Depreciation
Methods: -Straight line method
-Declining- balance method/ double declining method
-Sum of the years digit method
-Units of output method
Units of output method useful life is related directly to units of work performed by the asset
rather than passage of time
Specific Identification -Specified identity price/cost of item you sell.
-Most accurate method of inventory valuation
Weighted Average Total cost of goods divided by Total unit
Payroll tax difference between net pay and gross pay and what owner has to match
Depreciation periodic a location of the cost of assets
Depletion allocation of the cost of natural resources such as minerals
Amortization allocation of the cost of intangible assets, such as patents, are transferred to
expense through amortization
Capitalized Cost -Cost recorded as part of an asset's cost and depreciated over an asset's
useful life
- Added to the original cost
Straight-Line Method -method of computing the amount of depreciation expense
-Same amount of depreciation is recorded for each year
Acquisition Cost-Net Salvage Value
divided by Useful Life In Years Annual deprecation
Entry for depreciation Dr. Depreciation expense
Cr. Accumulated Depreciation
, Accumulated Depreciation is a contra account used to record annual depreciation
The entry to record annual depletion & amortization expense the same as the entry to
record Depreciation
Presentation on Financial statements a. Bldg (asset)
b. (Less) accumulated depreciation
c. = Book value
The value that the asset will have at end of life
d. Book Value: BV = assets - accumulated depreciation
e. Salvage Value: SV= predicated value of asset at end of useful life
# of methods of depreciation (4)
Book Value BV = assets - accumulated depreciation
Salvage Value: SV= predicated value of asset at end of useful life
Depreciation
Methods: -Straight line method
-Declining- balance method/ double declining method
-Sum of the years digit method
-Units of output method
Units of output method useful life is related directly to units of work performed by the asset
rather than passage of time
