ACG 2021 EXAM 2 FORMULAS QUESTIONS WITH COMPLETE ANSWERS

Depreciation (Double Declining Balance Method):


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Book value x (2 x straight-line rate) = depreciation expense




What intangible asset can NOT be amortized?


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Goodwill (evaluated for impairment each year).




Which accounts can accounts receivable be broken down into?

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Control account
Subsidiary account




Journal Entry for Sales Discount:


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Transaction 1: A/R (Debit)
Sales Revenue (Credit)
Transaction 2: Cash (Debit)
Sales Discount (Debit)
A/R (Credit)




How to calculate NET SALES:


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+ Revenue
- (sales discounts)
- (sales allowances)
- (sales returns)
---------------------------
Net Sales




What is an INTANGIBLE ASSET?


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