After you have mastered the material in this chapter you will be able to:
Identify different types of long-term operational assets. |
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Determine the cost of long-term operational assets. |
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Explain how different depreciation methods affect financial statements. |
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Determine how gains and losses on disposals of long-term operational assets affect financial statements. |
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Identify some of the tax issues that affect longterm operational assets. |
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Show how revising estimates affects financial statements. |
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Explain how continuing expenditures for operational assets affect financial statements. |
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Explain how expense recognition for natural resources (depletion) affects financial statements. |
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Explain how expense recognition for intangible assets (amortization) affects financial statements. |
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Understand how expense recognition choices and industry characteristics affect financial performance measures. |