NOTE: FOR CONCEPTS ONLY - FORMAT OF ACTUAL EXAM
A. Provide answers to parts A and B on the exam itself. Answer all problems in the separate
answer sheets provided.
B. The exam is worth 100 points. You have 75 minutes
Property, Plant & Equipment (PP&E)- Tangible Asset
1) XYZ Company bought a machine for $28,000 on January 1, 2007 and spends $10,000 to
transport the machine to the factory and an additional $10,000 to install the machine.
ACC311- Quiz 2 Notes (3)
Income statement is computed on the accrual basis
Operating Cash Flows (OCF)
a) Direct approach- recommended by the FASB
b) Indirect approach- 3 types of adjustments
Loss on sale of assets