The accumulated depreciation of an asset charged over a period of time
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10
Where is depreciation and provision for depreciation found in your final statements?
Depreciation - Income statement and provision for depreciation is found in the balance sheet
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5
What are provisions for bad debt?
Monies owed that are based off an estimate of accounts receivables
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10
Define accrued expense and give an example
An an expense amount owing that has rolled over into another period example rent owing from one month going into a new month
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5
We sold some goods to a Lee Pong worth $1,000 however lee only paid us $300 and was never to be seen again how much bad debt is to be recorded?
$700 (1000-300)
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10
Where is bad debt and provision for bad debt found in your final statements?
Bad debt an expense in the income statement and provision for bad debt in the balance sheet and income statement depending on an increase or decrease
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10
Our total accounts receivables are $120,000 but we estimate 25% will not pay how much money do we expect to get ?
$90,000 (120,000 x 25%) = 30,000 then 120000-30000
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10
A building was bought for $100,000 and is depreciated by 15% every year what is its depreciation using the straight line method?
$15,000 (15%x100000)
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5
Accrued expenses are classed as what account?
Current Liability
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10
Name 2 causes of depreciation
Wear and Tear, Rust, Erosion, Corrosion, Depletion, Time Factor
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10
What is the formula for straight line method?
cost - residual value / number of years useful
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10
A car that was bought for $30,000 and had depreciation of $15,000 was sold for $25,000 what value would be recorded and was it a profit or a loss on the sale
Profit of $10,000 (30000-15000) and then 25000-15000