Interim financial reports can be based
on one-month or three-month accounting periods
Property, plant and equipment are
referred to as plant assets
Question 18. Question :
On January 1, Able Company
purchased equipment costing $135,000 with an estimated
salvage value of $10,500, and an estimated useful life of five
years. What is the amount that should be recorded as
depreciation on December 31?
Question 19. Question :
A classified balance sheet:
Measures a company's ability to pay its
bills on time
Organizes assets and liabilities into
important subgroups
Presents revenues, expenses and net
income
Reports operating, investing and
financing activities
Reports the effect of profit and
dividends on retained earnings
Question 20. Question :
The special account used only
in the closing process to temporarily hold the amounts of
revenues and expenses before the net difference is added to
(or subtracted from) the retained earnings account is the:
Income Summary account