Module 10 Flashcards
1
Q
What is a Capital Asset?
A
Benefits many accounting periods, purchased to use
2
Q
3 Types of Capital Assets?
A
Property, Intangible and Long - Lived Assets
3
Q
What is an Intangible asset?
A
Only legal and purchase cost is capitalized
4
Q
So what we do with advertising costs?
A
It is theory an intangible but we expense it
5
Q
How do we journal a Capital Lease?
A
Dr Asset Leasehold, Cr Obligation under Capital Lease
6
Q
How do handle cost on Acquisition?
A
We include all the cost intended on starting production
7
Q
What is a basket purchase?
A
Its when 2 or more items are purchased together and cannot split, like Land and Building
8
Q
How do we straight-line ?
A
(PV - End life cost) / Life
