Conceptual

Describe plant assets and issues in accounting for them. Explain depreciation and the factors affecting its computation. Explain depreciation for partial years and changes in estimates.

Analytical

Compare and analyze alternative depreciation methods. Compute total asset turnover and apply it to analyze a company's use of assets.

Procedural

Apply the cost principle to compute the cost of plant assets. Compute and record depreciation using the straight-line, units-of-production, and declining-balance methods. Distinguish between revenue and capital expenditures, and account for them. Account for asset disposal through discarding or selling an asset. Account for natural resource assets and their depletion. Account for intangible assets. Appendix 8A—Account for asset exchanges.