Week 15 - Property, plant and equipment Cost of Sales Extended Trial Balance Flashcards
1
Q
Property, plant and equipment Formula
A
Tangible items that are used in the production of goods and services and expected to be used in more than one period
2
Q
Where is depreciation charged?
2
A
Annual depreciation charged to the income statement
Accumulated depreciation is deducted from the non-current asset cost in the Balance Sheet
3
Q
Different depreciation Methods
A
Straight line depreciation: Original cost - Scrap Value / useful life
Physical usage method
4
Q
Net Book Value Formula
A
Acquisition cost - accumulated depreciation
5
Q
Disposal of a Non-current asset and its effect on the statements
A
Gain/loss = SALE PROCEEDS - Net Book Value
