Chapter 7 study guide PDF

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Chapter 7 The following are the important topics you need to master when you study this chapter. Property, plant and equipment: you have to know the definitions of each type of assets in this category; what are the total costs to be recorded as an asset (that is, what costs should be “capitalized”, and what should be “expensed”). Land vs. Land improvements: what are their differences Intangible assets: the definition of each type of intangible assets; R&D costs Expenditure after acquisition: which types of expenditures should be capitalized; which should be expensed? Depreciation of property, plant and equipment: You need to know how to calculate depreciation expense and book value of assets under the three methods: straight-line method; declining-balance method; and activity-based method. 

How to record depreciation expense in a journal entry?

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What is accumulated depreciation?

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What is book value? How to calculate it?

Amortization of intangible assets, calculation. Sale of long-term assets: how to determine “gain on sale” or “loss on sale”...