POA theory CH11 Flashcards
1
Q
deciding which NCA to buy
A
accounting information
-price of NCA
-installation cost
non-accounting information
-purpose and features of NCA
-warranty
2
Q
capital expenditure
A
-cost to buy and bring the NCA to their intended use
-provide benefits for more than one year
3
Q
revenue expenditure
A
-costs to operate, repair and maintain the NCA in working condition
-provide benefits that will be used within one year
4
Q
depreciation
A
allocation of cost of a NCA over its estimated useful life
5
Q
str
A
6
Q
straight-line method
A
assumes NCA provide the same benefits throughout its estimated useful life
7
Q
reducing-balance method
A
assumes NCA provide more benefits in the earlier years than in its later years
