会计学英语电子版课件09
合集下载
相关主题
- 1、下载文档前请自行甄别文档内容的完整性，平台不提供额外的编辑、内容补充、找答案等附加服务。
- 2、"仅部分预览"的文档,不可在线预览部分如存在完整性等问题,可反馈申请退款(可完整预览的文档不适用该条件!)。
- 3、如文档侵犯您的权益，请联系客服反馈,我们会尽快为您处理(人工客服工作时间：9:00-18:30)。
18
a. b. c. d.
Review Question
Real estate fees incurred to purchase a building are treated on the financial statements as an? Expense in the period incurred. Expense in the period the fees are paid. Extraordinary expense, reported net of tax. Asset.
5
Types of Expenditures
Revenue Expenditure immediately charged against revenue as an expense Capital Expenditure - capitalized as an asset, not immediately expensed
8
Cost of Land Improvements
All expenditures necessary to make the improvements ready for their intended use
• • • • Drive ways Parking lots Fences Underground sprinklers
19
a. b. c. d.
2
11
Depreciation
The process of allocating to expense the cost of a plant asset over its useful life in a rational and systematic manner. • Depreciation is not a process of asset valuation.
I. Inventory II. Machinery III. Office supplies
a. b. c. d.
I and II only. II and III only. II only. III only.
17
Review Question
Real estate fees incurred to purchase a building are treated on the financial statements as an? Expense in the period incurred. Expense in the period the fees are paid. Extraordinary expense, reported net of tax. Asset.
o roof o floors o electrical wiring o plumbing
11
Buildings
When a building is constructed, its cost consists of
• • • • • the contract price architect's fees building permits Excavation挖掘 cost interest costs during construction
3
Reporting and Analyzing Long-Lived Assets
5. Explain how to account for the disposal of plant assets. 6. Describe methods for evaluating the use of plant assets. 7. Identify the basic issues related to reporting intangible assets. 8. Indicate how long-lived assets are reported on the balance sheet.
Financial Accounting:
Tools for Business Decision Making, 4th Edition
Kimmel · Weygandt · Kieso
CHAPTER 9
Prepared by Ellen L. Sweatt Georgia Perimeter College and Barbara Muller Arizona State University West
6
Plant Assets
Cost is measured by
• the cash paid in a cash transaction, or • the cash equivalent price paid when noncash assets are used in payment.
The cash equivalent price is equal to
4
Chapter 9
1
11
Cost of Plant Assets
Plant assets are resources that • have physical substance • are used in the operations of a business • are not intended for sale to customers • deliver service potential over their useful lives (except land) Plant assets are recorded at cost • cost consists of all expenditures necessary to acquire the asset and make it ready for its intended use
15
Review Question
Which of the following is/are properly classified as plant assets (property, plant, and equipment)?
I. II. III. Inventory Machinery Office supplies
A decline in revenueproducing ability may also occur because of obsolescence.
22
Land
Does not depreciate since its usefulness and revenue producing ability generally remain intact, or increase.
14
Leasing Versus Purchasing an Asset
Advantages of leasing include
• • • • Reduced risk of obsolescence过时 Little or no down payment首付款 Shared tax advantages Assets and liabilities may not be recorded
1
Chapter 9
REPORTING AND ANALYZING LONGLONGLIVED ASSETS
2
Reporting and Analyzing Long-Lived Assets
After studying this chapter, you should be able to:
Chapter 9
9
Buildings
All necessary expenditures relating to the purchase or construction of a building. When a building is purchased such costs include the
• purchase price • closing costs (attorney's fees title insurance) • real estate broker's commissions
Cost of land includes
• Cash price, closing costs, brokers’ commissions, accrued property taxes, etc. • Can also include costs to raze a building, drain and fill the land • Proceeds from sale of salvaged materials are deducted from the cost
13
Equipment
Two criteria apply in determining the cost of equipment
• the frequency 频率of cost - one time or recurring • the benefit period - the life of the asset or 1 year
12
Equipment
Cost of equipment includes
• purchase price • sales tax • freight charges and insurance during transit paid by the purchaser • expenditures required in assembling • installing and testing the unit
• the fair market value of the asset given up, or • the fair market value of the asset received, whichever is more clearly determinable.
7
Plant Assets Land
1. Describe how the cost principle applies to plant assets. 2. Explain the concept of depreciation. 3. Compute periodic depreciation using the straight-line method, and contrast its expense pattern with those of other methods. 4. Describe the procedure for revising periodic depreciation.
10
BuildHale Waihona Puke Baidungs
If a building is purchased, but needs to be readied for its intended use, cost includes
• expenditures for remodeling rooms or offices • replacing or repairing
a. b. c. d.
I and II only. II and III only. II only. III only.
16
Review Question
Which of the following is/are properly classified as plant assets (property, plant, and equipment)?
20
Depreciation
Three classes of plant assets are depreciated
• Land improvements • Buildings • Equipment
Land is NOT depreciated
21
Depreciable Assets
The revenue-producing ability of an asset declines during its useful life because of wear and tear.
a. b. c. d.
Review Question
Real estate fees incurred to purchase a building are treated on the financial statements as an? Expense in the period incurred. Expense in the period the fees are paid. Extraordinary expense, reported net of tax. Asset.
5
Types of Expenditures
Revenue Expenditure immediately charged against revenue as an expense Capital Expenditure - capitalized as an asset, not immediately expensed
8
Cost of Land Improvements
All expenditures necessary to make the improvements ready for their intended use
• • • • Drive ways Parking lots Fences Underground sprinklers
19
a. b. c. d.
2
11
Depreciation
The process of allocating to expense the cost of a plant asset over its useful life in a rational and systematic manner. • Depreciation is not a process of asset valuation.
I. Inventory II. Machinery III. Office supplies
a. b. c. d.
I and II only. II and III only. II only. III only.
17
Review Question
Real estate fees incurred to purchase a building are treated on the financial statements as an? Expense in the period incurred. Expense in the period the fees are paid. Extraordinary expense, reported net of tax. Asset.
o roof o floors o electrical wiring o plumbing
11
Buildings
When a building is constructed, its cost consists of
• • • • • the contract price architect's fees building permits Excavation挖掘 cost interest costs during construction
3
Reporting and Analyzing Long-Lived Assets
5. Explain how to account for the disposal of plant assets. 6. Describe methods for evaluating the use of plant assets. 7. Identify the basic issues related to reporting intangible assets. 8. Indicate how long-lived assets are reported on the balance sheet.
Financial Accounting:
Tools for Business Decision Making, 4th Edition
Kimmel · Weygandt · Kieso
CHAPTER 9
Prepared by Ellen L. Sweatt Georgia Perimeter College and Barbara Muller Arizona State University West
6
Plant Assets
Cost is measured by
• the cash paid in a cash transaction, or • the cash equivalent price paid when noncash assets are used in payment.
The cash equivalent price is equal to
4
Chapter 9
1
11
Cost of Plant Assets
Plant assets are resources that • have physical substance • are used in the operations of a business • are not intended for sale to customers • deliver service potential over their useful lives (except land) Plant assets are recorded at cost • cost consists of all expenditures necessary to acquire the asset and make it ready for its intended use
15
Review Question
Which of the following is/are properly classified as plant assets (property, plant, and equipment)?
I. II. III. Inventory Machinery Office supplies
A decline in revenueproducing ability may also occur because of obsolescence.
22
Land
Does not depreciate since its usefulness and revenue producing ability generally remain intact, or increase.
14
Leasing Versus Purchasing an Asset
Advantages of leasing include
• • • • Reduced risk of obsolescence过时 Little or no down payment首付款 Shared tax advantages Assets and liabilities may not be recorded
1
Chapter 9
REPORTING AND ANALYZING LONGLONGLIVED ASSETS
2
Reporting and Analyzing Long-Lived Assets
After studying this chapter, you should be able to:
Chapter 9
9
Buildings
All necessary expenditures relating to the purchase or construction of a building. When a building is purchased such costs include the
• purchase price • closing costs (attorney's fees title insurance) • real estate broker's commissions
Cost of land includes
• Cash price, closing costs, brokers’ commissions, accrued property taxes, etc. • Can also include costs to raze a building, drain and fill the land • Proceeds from sale of salvaged materials are deducted from the cost
13
Equipment
Two criteria apply in determining the cost of equipment
• the frequency 频率of cost - one time or recurring • the benefit period - the life of the asset or 1 year
12
Equipment
Cost of equipment includes
• purchase price • sales tax • freight charges and insurance during transit paid by the purchaser • expenditures required in assembling • installing and testing the unit
• the fair market value of the asset given up, or • the fair market value of the asset received, whichever is more clearly determinable.
7
Plant Assets Land
1. Describe how the cost principle applies to plant assets. 2. Explain the concept of depreciation. 3. Compute periodic depreciation using the straight-line method, and contrast its expense pattern with those of other methods. 4. Describe the procedure for revising periodic depreciation.
10
BuildHale Waihona Puke Baidungs
If a building is purchased, but needs to be readied for its intended use, cost includes
• expenditures for remodeling rooms or offices • replacing or repairing
a. b. c. d.
I and II only. II and III only. II only. III only.
16
Review Question
Which of the following is/are properly classified as plant assets (property, plant, and equipment)?
20
Depreciation
Three classes of plant assets are depreciated
• Land improvements • Buildings • Equipment
Land is NOT depreciated
21
Depreciable Assets
The revenue-producing ability of an asset declines during its useful life because of wear and tear.