Horngren_SM_08

Horngren_SM_08 - CHAPTER 8 COVERAGE OF LEARNING OBJECTIVES...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon

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

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

Unformatted text preview: CHAPTER 8 COVERAGE OF LEARNING OBJECTIVES LEARNING OBJECTIVES QUESTIONS EXERCISES PROBLEMS OTHER LO1: Distinguish a company’s expenses from expenditures that it should capitalize. 4,5,13,17 28,29,45,46 LO2: Measure the acquisition cost of tangible assets such as land, buildings, and equipment. 3,24,26,27 28,29,30 58,59 LO3: Compute depreciation for buildings and equipment using various depreciation methods. 6,7,8,20 31,32,33,34, 35,36,37,38, 39,40 58,60,64 75 LO4: Recalculate depreciation in response to a change in estimated useful life or residual value. 11 41,47,52 56,57,58,67,74 77 LO5: Differentiate financial statement depreciation from income tax depreciation. 9,10 43 67 LO6: Explain the effect of depreciation on cash flow. 42 61,62,63 78 LO7: Account for expenditures after acquisition. 12 44, 47 66 LO8: Compute gains and losses on the disposal of fixed assets and consider the impact of these gains and losses on the statement of cash flows. 14,18,19 31,32,33,48, 49,50 64,68,69,70,71 LO9: Determine the balance sheet valuation of tangible assets for companies who use the revaluation method allowed under IFRS. 22,27 53 LO10: Account for the impairment of tangible assets. 21,23 54 LO11: Account for intangible assets, including impairment 2,15,16,25 51,52 65,72,73 78 LO12: Explain the reporting for goodwill. 51 LO13: Interpret the depletion of natural resources 2 55 Chapter 8 Long-Lived Assets 277 CHAPTER 8 8-1 T a n g i b l e a s s e t s a r e t h o s e t h a t c a n b e s e e n and touched. Intangible assets are rights or economic benefits that are not physical in nature. 8-2 A l l t h r e e t e r m s r e f e r t o a n a l l o c a t i o n o f c o s t s o v e r t i m e . R e d u c t i o n o f i n t a n g i b l e a s s e t s i s generally called amortization. Depreciation is a reduction in buildings and equipment and other tangible assets. Depletion is a reduction in natural resources. 8-3 Cash discounts are reductions in original cost, not income. 8-4 The cost benefit test of record keeping and the concept of materiality. 8-5 When an expenditure is capitalized, it is not credited to stockholders’ equity. Rather, it becomes an asset with a useful life in excess of 1 year. An asset is debited and generally either cash or a liability is credited. 8-6 A c c u m u l a t e d D e p r e c i a t i o n i s n o t c a s h . I f specific cash is being accumulated for the replacement of assets, such cash will be an asset specifically labeled as a “Cash Fund for Replacement and Expansion” or a “Fund of Marketable Securities for Replacement and Expansion.” Accumulated Depreciation is the cumulative amount of an asset’s depreciable value that has been expensed....
View Full Document

This note was uploaded on 04/05/2012 for the course STERN C10.0001.0 taught by Professor Hipscher during the Spring '11 term at NYU.

Page1 / 42

Horngren_SM_08 - CHAPTER 8 COVERAGE OF LEARNING OBJECTIVES...

This preview shows document pages 1 - 3. Sign up to view the full document.

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