HW36_37sol

HW36_37sol - Problem 36 A Assets are economic resources...

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Problem 36 A Assets are economic resources that will benefit the company in the future. Expenses are resources that have been used up to produce income. They are both costs and differ in whether they are used up or not. B A cost incurred that will be capitalized. Accounted for by debiting an asset account which will appear on the balance shee C Long-term economic resource with no physical existence that will the company wil use in the production of income over more than one year. D The allocation of cost over time E Shorter of legal or useful life G 1. [$365,000/8] = $45,625 2. $365,000 - $45,625 - $45,625 = $273,750 3. Balance sheet in long-term assets section 4. For indirect method, it is added to net income. Adding removes it from the computation of income because it is not a cash flow Problem 37 Items highlighted in yellow are assets. Of those, accumulated depreciation and allowance for doubtful accounts are contra assets so they should be subtracted to arrive at total assets. Green highlights are non-interest bearing current liabilities.
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This note was uploaded on 07/09/2011 for the course ACG 2071 taught by Professor Tanner during the Spring '11 term at UNF.

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HW36_37sol - Problem 36 A Assets are economic resources...

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