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Accounting > Assets > Flashcards

Assets Flashcards

1
Q

What is the double entry for Plant and Machinery?

A

Credit - cash
Debit - PPE

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2
Q

What is the double entry for expenditure on utilities?

A

Credit - cash
Debit - expense

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3
Q

What additional expenses are including in the purchase of Plant and machinery?

A

Delivery
Installation
Testing
Training - expense (P&L)

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4
Q

What is the double entry for additional expenses?

A

Credit - cash
Debit - equipment
Debit - expense

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5
Q

How does the straight line method of depreciation work?

A

Amount/years in use

Depreciation fixed amount every year

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6
Q

What is the double entry for depreciation?

A

Credit - PPE
Debit - Depreciation

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7
Q

What is the reducing balance method of depreciation?

A

Cost x Depreciation% given

Applied to carrying amount every year

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8
Q

Does the cumulative depreciation have a separate T account?

A

Yes

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9
Q

What does impaired mean?

A

Goods damaged

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10
Q

What is the recoverable amount of an impaired asset?

A

Higher value of either using or selling the asset

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11
Q

What is the double entry for an impaired asset?

A

Credit - PPE value lost
Debit - Expense

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12
Q

What is the double entry for an impaired asset sold?

A

Credit - PPE value
Debit - cash amount received
Credit - profit made or debit loss

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13
Q

What are intangibles?

A

Software
IP

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14
Q

What is amortisation?

A

Depreciation for intangibles

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15
Q

What is the double entry for research?

A

Credit - cash
Debit - expense

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16
Q

What is the double entry for development?

A

Credit - cash
Debit - Asset

17
Q

What is the double entry for cash purchase of an asset?

A

Credit - cash
Debit - asset

18
Q

What is the double entry for an asset purchased on credit?

A

Credit - payable
Debit - asset

19
Q

What is the double entry for an asset bought on lease?

A

Credit - lease
Debit - asset

20
Q

How is the balance on an asset register calculated after a disposal?

A

Balance b/d - cost of asset + depreciation

21
Q

How is impairment loss calculated?

A

Carrying amount - disposal costs

Accounting (14 decks)

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