Credit is the left side of an account. All assets and expenses have a debit balance. All liabilities and incomes have a credit balance. Deferred Revenue will appear on the Income Statement. When a company makes a bank deposit, it debits its cash account. Acquiring new air conditioning system for the building is capital expenditure. Value Added Tax (VAT) is included in the cost of assets. If a company holds between 20% and 50% of the voting power in a corporation, then the investor should use equity method. If a company holds more than 50% of the voting power in a corporation, then the parent company should consolidate its financial statement with subsidiary's financial statement Repairs & Maintenance costs are recognized as expense of the current period, and improvements costs are capitalized. Goodwill is the excess of purchase price over the book values of the individual assets acquired. A capital lease requires an asset and a liability to be recorded based on the value of the asset on the date of the lease. Borrowing costs that are directly attributable to the acquisition, construction or production of an asset form part of the cost of that asset and, therefore, should be capitalized. If the carrying value of an asset is less than the recoverable amount, the asset is impaired. Depreciation is charged on tangible fixed assets and it is not charged on any current asset. Cash balance on a company's books should always equal the cash balance shown by its bank. To recognize revenue a company must have delivered goods or services to its customer. When the amount of VAT (Value Added Tax) on sales exceeds the VAT on purchases, the entity is required to recognize the difference as VAT Carried-Forward. If the stated interest rate on a bond is greater than market interest rate, then interest expense for a period is greater than interest payable. Periodic inventory system computes the cost of goods sold and updated inventory balance only at the end of an accounting period when a company takes a physical count of inventory. TRUE FALSE