Quiz Review Week 3

Week 3 Quiz Review – Chapter 11 Here are the topics covered on the quiz. You should know the following: 1. Factors needed to compute depreciation for a capital asset 2. Similarity/differences between depreciation, depletion and amortization 3. Computing depreciation expense and book value for an asset acquired in the current year, using DDB and/or Sum of the Years Digits methods 4. Computing current year depreciation in a year where company changed depreciation method from prior year(s) on particular asset category 5. Computing current year depreciation in a year where the estimated useful life and/or salvage value are changed from original assumptions used when acquired, and whether to account for this change retroactively or prospectively 6. How to determine whether there has been impairment loss and – if so – how to compute it