Depreciation

3. ABC company is a very large publicly company with many receivables and payables. What basis of accounting does ABC company use?
8. The conversion of a long term asset to expense over the course of its useful life due to the passage of time, wear and tear, or obsolescence.
10. When you record depreciation on a long term tangible asset, you debit depreciation expense and credit ___________________________________.
11. Another name for residual value.

1. Expenses are recognized as they are incurred and recorded in the same period as the revenues that those expenses generated.
2. Prepaid rent, prepaid insurance prepaid advertising all fall under what account classification?
4. How much you can sell an asset for, depending on supply and demand and what the public is willing to pay for it.
5. Another name for a long term tangible asset.
6. DEF Inc. is a very small business with very few receivables and payables and is looking for a simple method to record transactions. What basis of accounting would they most likely use?
7. What type of account is accumulated depreciation?
9. Original Cost - accumulated depreciation