- What is involved in preparing a bank rec?
- How do deposits in transit affect a bank rec?
- How do NSF checks affect a bank rec?
• What does depreciation do? What sort of a process is it? It is a process of cost allocation, NOT asset valuation
• What is book value and what is it equal to? The undepreciated cost of the asset
• What costs are capitalized as part of an asset's actual cost? Anything deemed reasonable and necessary for placing the asset in servic
- What does a good system of internal control do?
- What is the ultimate purpose in preparing a bank rec?
- What do outstanding checks do to a bank rec?
• Given bank rec info, you will be asked to answer questions pertaining to the given information such as what is the adjusted cash balance, what are the total amount of outstanding checks, and what journal entry is required upon completion of the bank rec?
• What is the depreciation rate of an asset equal to? (1 divided by the assets useful life)
• How is the matching principle applied in the process of depreciation?
• What do accelerated depreciation methods do and when are they usually used?
• Know the various depreciation methods introduced in chapter 9
• Who is responsible for ultimately selecting depreciation methods in financial reporting? Management
• Know how to calculate what is booked (capitalized) as part of an assets cost
• You will be given information for an asset and asked to apply several different depreciation methods such as straight line with the half year convention, straight line with rounding fractional years to the nearest month, the 200% declining balance with the ½ year convention, 150% declining balance with the ½ year convention - you will be given another set like this and asked to calculate depreciation for the first two years
• There will be a fill in series of questions for depreciation - you must fill in the amounts of depreciation for an asset utilizing straight line, 200% declining balance and 150% declining balance over a two year period
- What is the FICA tax??? (chapter 10)
• How do we report the current portion of long term debt? (chapter 10)chapter 10 questions- asked what the full amount of a note that matures will be upon maturity, what amount of interest expense will be recognized for a period of time, the adjusting entry needed, etc.
• Will be given information and asked the total amount of the current liability for the loan, the effect of omitting an adjusting entry on the financial statements, etc.
• What are the requirements of employers with respect to what they must pay on the wages paid to each employee? -Review the beginning of chapter 10
• What is the principle of consistency with respect to depreciation policies?
• Which depreciation method is most commonly used among publicly owned corporations?
• What are examples of entries that must be made upon completion of a bank rec?