FACC final exam |50| questions with complete solutions

FACC final exam |50| questions with complete solutions capitalize -Correct Answer-record an expenditure as an asset capital expenditures -Correct Answer-spending to purchase long lived tangible assets How to compute straight line depreciation (per 1 year) -Correct Answer-depreciation expense = (cost - residual value) X 1/useful life land is not depreciated record year 2 depreciation -Correct Answer-debit: depreciation expense credit: accumulated depreciation income statement for assets & depreciation expenses -Correct Answer-just amortization expense (add depreciations) income statements for assets and their depreciation -Correct Answer-list assets purchase cost accumulated amortization: added depreciations net: purchases costs - amortizations find estimated useful life on equipment purchase: 16000 residual: 4000 accumulated depreciation: 2000 -Correct Answer-= 12000