Accounting Principles 7Th Canadian Edition Volume 2 By Jerry J. Weygandt

Accounting Principles 7th Canadian Edition Volume 2 by Jerry J. Weygandt is a comprehensive textbook covering important principles related to accounting, specifically focusing on long-lived assets. This edition delves into calculating the cost of property, plant, and equipment, applying different depreciation methods, explaining factors that influence changes in periodic depreciation, and demonstrating how to account for property, plant, and equipment disposals.

CHAPTER 9: Long-Lived Assets

CHAPTER STUDY OBJECTIVES

1. Calculate the cost of property, plant, and equipment: The cost of property, plant, and equipment includes all necessary costs to acquire the asset and prepare it for its intended use. This cost encompasses all expenditures benefiting future periods and may also include asset retirement costs.
2. Apply depreciation methods to property, plant, and equipment: After acquisition, assets are accounted for using either the cost model or the revaluation model. Depreciation, the systematic allocation of an asset’s cost over its useful life, is crucial. Common depreciation methods include straight-line, diminishing-balance, and units-of-production methods.
3. Explain factors influencing periodic depreciation changes and calculate revised depreciation: Changes in depreciation can result from factors like capital expenditures, impairments in fair value, and alterations in useful life estimates. Revision of depreciation is necessary for accurate financial reporting.
4. Demonstrate how to account for property, plant, and equipment disposals: Accounting for asset disposals involves updating depreciation for partial periods, calculating carrying amounts, determining gains or losses on disposals, and removing asset and accumulated depreciation accounts.

Accounting Related Test Banks

Explore these related Test Banks for additional study materials related to the field of accounting:

– Test Bank For Aging And Society Canadian Perspectives 7th Edition By Lori Campbell, Herbert

– Accounting Principles 7th Canadian Edition Volume 1 By Jerry J. Weygandt

For a deeper understanding of accounting principles, these resources can be valuable supplements to your study materials.

FAQs

What are some common depreciation methods used for long-lived assets?

Some common depreciation methods include straight-line depreciation, diminishing-balance depreciation, and units-of-production depreciation.

Why is it important to calculate the cost of property, plant, and equipment accurately?

Accurately calculating the cost ensures that all necessary expenses are accounted for and that the asset’s value is reflected appropriately in financial statements.

What factors can lead to changes in periodic depreciation?

Changes in periodic depreciation can be influenced by capital expenditures, impairments in asset value, adjustments in useful life estimates, or changes in the depreciation method used.

Conclusion

Understanding the principles related to long-lived assets is essential for accounting professionals to accurately report on an organization’s financial position. Accounting Principles 7th Canadian Edition Volume 2 By Jerry J. Weygandt provides a solid foundation for grasping these concepts and applying them in real-world scenarios. Ensure to utilize supplementary resources like Test Banks to enhance your learning experience in the field of accounting.