ACCT 301 – Week 4 Homework The primary reading material source is http://www.pri

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ACCT 301 – Week 4 Homework
The primary reading material source is http://www.pri

ACCT 301 – Week 4 Homework
The primary reading material source is http://www.principlesofaccounting.com/.
(Secondary resource: OpenStax textbook available within LEO.)
Topics this week include PPE: Property, Plant & Equipment; Depreciation; Intangibles; Amortization; and Other long-term assets. Other concepts and topics include Current Liabilities, Payroll; Partnerships; Corporations; Long Term Liabilities; Long Term Assets, and Investments.
REQUIREMENT:
Read chapters 10, 11 and 14 at www.principlesofaccounting.com.
After reading the above assigned chapters, respond to the following questions:
What is the difference between Property, Plant and Equipment (PP&E) and investments?
What kinds of expenditures are included when a long term asset (PP&E) is purchased?
Define depreciation. What kind of assets are depreciated?
Explain straight-line, units-of-output (production), and double-declining balance methods. When is it appropriate to use each these different depreciation methods?
Why is depreciation that has been recognized over the life of an asset shown in a contra account? Why not just reduce the asset account?
What is the difference between tangible and intangible assets? Give an example of each.
What are the characteristics of the corporate form of business organization?
What is the difference between contributed capital and retained earnings for a corporation?
Discuss the features of common stock and preferred stock.
What is treasury stock? Why might a company repurchase its own stock?
What is the difference between cash dividends and stock dividends?
What is reported in the Statement of Stockholder’s Equity?

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