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Flashcards in General Deck (4)
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1

When are intangible assets recognized in financial documents?

Only when that that intangible asset has an identifiable historical cost attributable to it.

2

Accumulated Amortization is a contra-account for?

Amortization Expense

3

When accounting for the depletion of a natural resource, how is it represented?

Over its productive live. Example
$10m oil/20M barrels= $.50 a barrel
this year 500,000 barrels drawn (500,000 x $.50) creates a depletion expense of $250,000

4

A mortgage that compounded interest monthly means what?

That if a payment is missed the interest will reflect the principle, plus any unpaid interest and principle payments. In essence interest on the unpaid interest.