Questions from Financial Accounting

Q: What is the difference between a capital expenditure and a revenue expenditure

What is the difference between a capital expenditure and a revenue expenditure? Give an example of each.

Q: What is depreciation? Define useful life, residual value, and

What is depreciation? Define useful life, residual value, and depreciable cost.

Q: How does a business decide which depreciation method is best to use

How does a business decide which depreciation method is best to use?

Q: What is the depreciation method that is used for tax accounting purposes

What is the depreciation method that is used for tax accounting purposes? How is it different than the methods that are required by GAAP to be used for financial accounting purposes?

Q: If a business changes the estimated useful life or estimated residual value

If a business changes the estimated useful life or estimated residual value of a plant asset, what must the business do in regard to depreciation expense?

Q: What financial statement are property, plant, and equipment reported on

What financial statement are property, plant, and equipment reported on, and how?

Q: How is gain or loss determined when disposing of plant assets?

How is gain or loss determined when disposing of plant assets? What situation constitutes a gain? What situation constitutes a loss?

Q: Nature Foods Grocery reported the following comparative income statements for the years

Nature Foods Grocery reported the following comparative income statements for the years ended June 30, 2019 and 2018: During 2019, Nature Foods Grocery discovered that ending 2018 merchandise invent...

Q: What is goodwill? Is goodwill amortized? What happens if the

What is goodwill? Is goodwill amortized? What happens if the value of goodwill has decreased at the end of the year?

Q: On February 28, 2017, Rural Tech Support purchased a copy

On February 28, 2017, Rural Tech Support purchased a copy machine for $53,400. Rural Tech Support expects the machine to last for six years and have a residual value of $3,000. Compute depreciation ex...