Chapter 6 Comments 8th ed

Chapter 6 Comments 8th ed - Instructor Comments Chapter Six...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Instructor Comments Chapter Six Chapter 5 was a tough one. In the typical principles of accounting course, that material is covered in three different chapters. Chapter 6 also will require considerable time and effort for most students. You should understand the “Capitalizing versus Expensing” discussion on page 197. Also, it is important to understand how to determine the cost of assets and the journal entries to record asset acquisition and disposal. Depreciation is the “allocation of the cost of an asset in some systematic and rational manner over the expected useful life of the asset”. It is desirable to preserve the cost of the asset in the accounting records, therefore we use a contra account called accumulated depreciation instead of crediting the asset account directly. Depreciation is just another example of the matching principle (allocating the asset’s cost to expense in a way that hopefully measures how the asset is used in the process of generating revenue). You should know how to calculate depreciation expense based on
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 04/23/2011 for the course ACC 490 taught by Professor Johnthompson during the Spring '10 term at Murray State KY.

Page1 / 3

Chapter 6 Comments 8th ed - Instructor Comments Chapter Six...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online