Topic 10 Flashcards
1
Q
Capital Expenditure
A
increases the non-current assets.
ex. purchase of computers
2
Q
Revenue Expenditure
A
regular expenditure
ex. repairs & maintenance in machines
3
Q
Capital receipt
A
- decrease the non-current assets
- not earned out of regular operations of entity
- it is by sale of an item of capital expenditure
4
Q
revenue receipt
A
- regular income
- decrease current assets
ex. rent received
5
Q
cost of an asset includes
A
- purchase cost
- cost directly attributable - bring asset to location
- dismantling cost - remove the old asset and bring the new one
6
Q
Depreciation - straight line methods
A
(cost - residual value) / estimated useful life
7
Q
Depreciation - reducing balance method
A
depreciation % x NBV
8
Q
Net Book Value / Carrying Value
A
cost - accumulated depreciation
9
Q
Non-current asset register
A
detailed schedule of non current asset - include costs too
10
Q
depreciation
A
spreading the net cost over their estimated useful life
