1. Explain why we depreciate assets over their useful lives instead of just expensing them in the year they are acquired?
2. In chapter 8 of our text we learned that a depreciation expense is a non-cash item and is added back to the operating activities of the cash flow statement using the in-direct presentation method.Briefly discuss why this activity takes place and its impact on operating activities.(Depreciation - Chapter 10)
3. What equation describes the periodic inventory system?
4. Briefly discuss and compare the four major alternative cost-flow assumptions for inventory.
5. Review the Valuing Goodwill article.What are goodwill and intangible assets?Why might you want to value these items?What is impairment testing?