Define Fixed Assets.

Define Long Term.

Most often any costs incurred when acquiring a fixed asset are added to the total cost. What type costs ARE NOT included in the cost of acquiring a fixed asset?

Define Depreciation.

When recording depreciation expense what account is credited? What is unique about that account?

What three factors determine depreciation expense?

What are the three (3) common depreciation methods? Define each and explain how you calculate each method?

Which method ignores residual value when calculating depreciation?

What is the name of the Federal Income Tax Method?

When Selling Fixed assets how do you calculate the Book Value? Once you have book value if you sell the asset for more cash than book value what is it called? Less than book value what is it called?

What is the method used to record the consumption of natural resources. To what depreciation method is it similar?

Define intangible assets. Give four (4) examples and the method used to record the consumption expense.

Which Fixed asset class does not depreciate/deplete/or amortize?