Accounting

Identify impairment situations and describe the two-step impairment process.   Impairment is a two-step process. Step 1: __________ The long-term asset is impaired if future cash flows are less than book value. Step 2: If impaired, record loss: The impairment loss is the amount book value exceeds fair value. IFRS see difference from GAAP,  page 347   Practice:  Northwest […]

Describe the relationship among return on assets, profit margin, and asset turnover.   Return onassets (ROA) = _____________ a.        It shows how efficiently a company uses its assets to produce income. Return on assets can be separated to examine two important business strategies: profit margin and asset turnover. a.       Profit margin equals _______________ i.      Shows the percentage of each sales dollar

Account for the disposal of long-term assets.   Sale of long-term assets Update depreciation for partial year, if necessary Calculate book value Compare to sale amount If we dispose of an asset for more than book value, we record a _____ If we dispose of an asset for less than book value, we record a ________  

Calculate amortization of intangible assets.   Amortization is a process, similar to depreciation, in which we allocate the cost of intangible assets over their estimated service life. Intangible assets with an indefinite useful life (goodwill and most trademarks) are not amortized. Place Your Order Here!

Calculate depreciation of property, plant, and equipment.   __________definition = Decrease in value (or selling price) of an asset __________ definition = Allocation of an asset’s cost to an expense over time Applying the __________ rule Adjusting entry – Chapter 3, page 116 Accumulated Depreciation i.      Contra asset account ____________________________ i.      Capitalized asset less accumulated depreciation ii.      Does not refer to

  Discuss the accounting treatment of expenditures after acquisition.   Capitalize expenditures if they benefit ________ periods. Additions Improvements Legal defense of intangible assets, if successful Expense expenditures if they benefit only the _______period. Repairs and maintenance Materiality Would the item influence an investor or creditor’s decision? Place Your Order Here!

 Identify and record the major types of intangible assets.   Purchased intangible assets are __________ At their purchase price Plus all costs necessary to get the asset ready for use. i.      Legal fees ii.      Filing fees Internally generated intangible assets, such as R&D and advertising costs, are ________ as those costs are incurred IFRS differs, Appendix E-7- ____________ debit patent for

hapter 7 Long-Term Assets     PART 1 – ACQUISITIONS LO 1  Identify and record the major types of property, plant, and equipment.   Property, Plant, and Equipment (PPE) __________record at) i.      Cost ii.      All expenditures necessary to get the asset ready to use How long will asset benefit company? i.      WorldCom- Practice:  If a company initially records an expense

Bank Reconciliation and Journal Entries Activity Context Revisit the MBA Course Alignment Map to review how all activities assist you in achieving the course competencies and overall program outcomes. Activity Instructions For this assignment, you will prepare a bank reconciliation and the related journal entries required through the reconciliation process. Complete P6-6 (page 317) and

What are several examples of internal management, management prepared information that ordinarily would not be communicated externally CHAPTER 1-2 Discussion Question 1 What are several examples of internal management, management prepared information that ordinarily would not be communicated externally?  Why? Discussion Question 2 Why is knowledge of accounting terms and concepts useful to persons other