Questions from College Accounting

Q: If a note receivable is discounted at a bank, on what

If a note receivable is discounted at a bank, on what amount and for what time period does the bank compute the discount?

Q: If a note receivable that was discounted at a bank is dishonored

If a note receivable that was discounted at a bank is dishonored by its maker, what is the responsibility of the person or business discounting the note?

Q: What is meant by the “depreciable cost” of a plant

What is meant by the “depreciable cost” of a plant asset?

Q: Which depreciation method provides the fastest write-off of an asset

Which depreciation method provides the fastest write-off of an asset?

Q: Explain how the depreciation method selected affects the balance sheet and income

Explain how the depreciation method selected affects the balance sheet and income statement.

Q: Why are both the debit and credit amounts in the Adjustments columns

Why are both the debit and credit amounts in the Adjustments columns on the Income Summary line of the work sheet extended to the Adjusted Trial Balance columns?

Q: For assets acquired after 1986, what depreciation methods are allowed for

For assets acquired after 1986, what depreciation methods are allowed for federal income tax purposes?

Q: Explain what is meant by the “replacement” of a component

Explain what is meant by the “replacement” of a component of a plant asset.

Q: What are the three major ways of disposing of a plant asset

What are the three major ways of disposing of a plant asset?

Q: What are the two major types of depreciation?

What are the two major types of depreciation?