Accounting Exam 3

Depreciation Methods: Straight-Line Method

(Cost - Salvage) / Useful Life in Periods
Depreciation Methods: Units-of-Production Method
- Step One:
- Depreciation Per Unit = (Cost - Salvage Value)/ Total Units of Production
- Step Two:
- Depreciation Expense = Depreciation Per Unit x Units Produced in Period
Depreciation Methods: Declining-Balancce Method
- Step One:
- Straight-Line Rate = 100% / Useful Life
- Step Two:
- Double-Declining-Balance Rate = 2 x Straight-Line Rate
- Step Three:
- Dereciation Expense = Double-Declining-Balance Rate x Beginning-Period Book Value
Change In Estimates for Depreciation

(Book value - Revised Salvage Value) / Revised Remaining Useful Life
Natural Resources: Cost Determination and Depletion
- Step One:
- Depletion Per Unit = (Cost - Salvage Value) / Total Units of Capacity
- Step Two:
- Depletion Expense = Depletion Per Unit x Units Extracted and Sold in Periods
Total Asset Turnover =

Net Sales / Average Total Assets
Days Sales Uncollected =

(Accounts Reveicable/Net Sales) x 365
Interest =

Principal Of The Note x Annual Interest Rate x Time In Years
Accounts Receivable Turnover =

Net Sales / Average Accounts Receivable

Author

andreabyerly

79222

Card Set

Accounting Exam 3

Description

Accounting Chapters 8, 9, 10

Updated

2011-04-13T01:02:40Z

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