GB 518 RANK Let's Do This /gb518rank.com GB 518 RANK Let's Do This /gb518rank.com | Page 37

A credit to the Accounts Receivable
account in the general ledger and a debit to the customer's
account in the accounts receivable ledger
A credit to Sales and a credit to the
customer's account in the accounts receivable ledger
Question 14. Question :
Amortization:
Is the systematic allocation of the cost of
an intangible asset to expense over its estimated useful life
Is the process of allocating to expense the
cost of a plant asset to the accounting periods benefiting from its
use
Is the process of allocating the cost of
natural resources to periods when they are consumed
Is an accelerated form of expensing an
asset's cost
Is the same as depletion
Question 15. Question :
A company's annual accounting
period ends on September 30. During the current year a
depreciable asset which cost $16,000 was purchased on January
1. The asset has a $2,000 estimated salvage value. The company
uses straight-line depreciation and expects the asset to have a 4-