Depreciation
Quiz yourself by thinking what should be in
each of the black spaces below before clicking
on it to display the answer.
Help!
|
|
||||
|---|---|---|---|---|---|
| Whether a company uses GAAP rules or tax rules to compute depreciation recorded in the financial statements dependson upon how the company uses its financial statements. True or false and why? | True. If a company does not need its financial statements reviews or audited by a CPA, it can use the tax depreciation amount on its financial statements.
🗑
|
||||
| If a company's year-end financial statements are to be reviewed by a CPA, the depreciation amount for the statements is generally computed under GAAP rules. True or false and why? | True. If the financial statements are to be reviewed by a CPA, either depreciation must be computed under GAAP rules or the tax depreciation amount cannot differ materially from the GAAP depreciation amount.
🗑
|
||||
| Even if a company's tax and GAAP depreciation expense are not materially different, a CPA conducting an audit will require the company to use the amount computer under GAAP. True or false and why? | False. If the difference between GAAP and tax depreciation is not material, the tax amount can be used for book purposes (this is, for the financial statements).
🗑
|
||||
| The adjusting entry to record $5,000 of depreciation expense in the general ledger is. | Depreciation Expense $5,000
--- Accumulated Depreciation $5,000
🗑
|
||||
|
🗑
|
Review the information in the table. When you are ready to quiz yourself you can hide individual columns or the entire table. Then you can click on the empty cells to reveal the answer. Try to recall what will be displayed before clicking the empty cell.
To hide a column, click on the column name.
To hide the entire table, click on the "Hide All" button.
You may also shuffle the rows of the table by clicking on the "Shuffle" button.
Or sort by any of the columns using the down arrow next to any column heading.
If you know all the data on any row, you can temporarily remove it by tapping the trash can to the right of the row.
To hide a column, click on the column name.
To hide the entire table, click on the "Hide All" button.
You may also shuffle the rows of the table by clicking on the "Shuffle" button.
Or sort by any of the columns using the down arrow next to any column heading.
If you know all the data on any row, you can temporarily remove it by tapping the trash can to the right of the row.
Embed Code - If you would like this activity on your web page, copy the script below and paste it into your web page.
Normal Size Small Size show me how
Normal Size Small Size show me how
Created by:
djarcadian
Popular Finance sets