Quiz 5 Syllabus

Chapter 9: Learning Objective - EXAMINABLE

1. Describe how the historical cost principle applies to plant assets.
 Determining the Cost of Plant Assets
2. Explain the concept of depreciation and how to compute it.
 3 depreciating methods (straight line, units of activity and declining balance)
 Component depreciation
 Revising periodic depreciation
3. Distinguish between revenue and capital expenditures, and explain the entries for each.
 Expenditures During Useful Life
4. Explain how to account for the disposal of a plant asset.
 Retirement of plant assets
 Sale of plant assets
5. Explain the basic issues related to accounting for intangible assets.
 Accounting for intangibles
 Research and Development costs
6. Indicate how plant assets, natural resources, and intangible assets are reported.

Chapter 9: Learning Objective – NOT EXAMINABLE

1. Explain the concept of depreciation and how to compute it.
 Depreciation and Income taxes
 Revaluation of Plant Assets
2. Compute periodic depletion of extractable natural resources.
3. Appendix 9A – Exchange of plant assets.

Chapter 10: Learning Objectives – EXAMINABLE

1. Explain a current liability, and identify the major types of current liabilities.
2. Describe the accounting for notes payable.
3. Explain the accounting for other current liabilities.
 Sales tax payable
 Unearned revenue
 Current maturities of long term debt
 Statement presentation and analysis
4. Describe the accounting for long-term notes payable.
5. Identify the methods for the presentation and analysis of non-current liabilities.

Chapter 10: Learning Objectives – NOT EXAMINABLE

1. Explain why bonds are issued, and identify the types of bonds.
2. Prepare the entries for the issuance of bonds and interest expense.
3. Describe the entries when bonds are redeemed.