Week 15 - Property, plant and equipment Cost of Sales Extended Trial Balance Flashcards

1
Q

Property, plant and equipment Formula

A

Tangible items that are used in the production of goods and services and expected to be used in more than one period

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2
Q

Where is depreciation charged?
2

A

Annual depreciation charged to the income statement

Accumulated depreciation is deducted from the non-current asset cost in the Balance Sheet

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3
Q

Different depreciation Methods

A

Straight line depreciation: Original cost - Scrap Value / useful life

Physical usage method

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4
Q

Net Book Value Formula

A

Acquisition cost - accumulated depreciation

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5
Q

Disposal of a Non-current asset and its effect on the statements

A

Gain/loss = SALE PROCEEDS - Net Book Value

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