Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
4 Cards in this Set
- Front
- Back
|
What is the correct double entry for accumulated depreciation? |
Dr Depreciation Expense Cr Accumulated Depreciation |
|
|
What is the reasoning behind charging depreciation in historical cost accounting? |
To match the cost of the non-current asset with the revenue that the asset generates. |
|
|
What is goodwill? |
The excess value of a business above the carrying amount of its assets less itsliabilities in its accounting records.This may stem from reputation, skills and experience of staff, or customerrelationships. Goodwill may be a valuable asset but is generally not recorded in the financialstatements. It is highly subjective and changes from day to day. The exception to this rule is where goodwill is purchased in the acquisition of anotherbusiness. |
|
|
Which of the following statements about intangible assets in public company financial statements are correct? (1) Internally generated goodwill should not be capitalised. (2) Purchased goodwill should normally be amortised through the statement of profit or loss. (3) Development expenditure must be capitalised if certain conditions are met. A) 1 and 3 only B) 1 and 2 only C) 2 and 3 only D) 1, 2 and 3 |
A) 1 and 3 only Purchased goodwill is retained in the statement of financial position subject to an impairment review. |
