Chapter 2 - Accounting for Business Transactions Flashcards
1
Q
what are the two types of accounts?
A
Balance sheet accounts
Nominal accounts - temporary accounts
2
Q
what is depreciation expense formula?
A
Depreciation Expense = Depreciable asset cost - Salvage Value Number of periods of useful life
3
Q
How do you calculate interest expense?
A
Interest = Principal x Annual Interest Rate x Portion of year covered by time of investment
