Financial and other topic refreshers for AUD Exam

Question 1

Allocating costs of long-term assets:

Answer 1

Fixed assets = Depreciation expense
Intangibles = Amortization expense
Natural resources = Depletion expense

Question 2

Change in depreciation rate = Change in estimate

Answer 2

Accounted for in the period of change and future periods

Not handled retrospectively, so there is no journal entry to correct prior years