Day 8 Flashcards
1
Q
How do you calculate half year convention for depreciation?
A
The first year is half (multiplied by 0.5)
MCQ-16152
2
Q
How is double declining depreciation calculated?
A
Using 2/n
n = # of useful life/years
MCQ-11091
3
Q
Assets held for sale are no longer depreciated?
A
True
MCQ-08244
4
Q
Double Declining Balance Depreciation Expense =
A
2 × (1/n) × (Cost - AD)
MCQ-00144
5
Q
In regards to depletion, how are estimated restoration costs accounted for?
A
Added to the depletable base of the natural resources
MCQ-05120
6
Q
How to test assets for impairment:
A
Step 1: Compare Carrying Amount to the sum of Undiscounted Future cash flows
If Carrying Amount is LESS than the sum of Cash Flows = NO IMPAIRMENT
