General Flashcards
1
Q
When are intangible assets recognized in financial documents?
A
Only when that that intangible asset has an identifiable historical cost attributable to it.
2
Q
Accumulated Amortization is a contra-account for?
A
Amortization Expense
3
Q
When accounting for the depletion of a natural resource, how is it represented?
A
Over its productive live. Example
$10m oil/20M barrels= $.50 a barrel
this year 500,000 barrels drawn (500,000 x $.50) creates a depletion expense of $250,000
4
Q
A mortgage that compounded interest monthly means what?
A
That if a payment is missed the interest will reflect the principle, plus any unpaid interest and principle payments. In essence interest on the unpaid interest.
