5 Questions
What is the correct definition of a provision in accounting?
An obligation that is uncertain as to amount
What is the characteristic of callable bonds?
Subjected to retirement at a stated amount prior to maturity at the option of the issuer
When is the useful life of an asset estimated in accounting?
At the time that the asset is placed in service
What happens to the carrying amount of an asset if there is a change in useful life or depreciation method?
It is recomputed and allocated over the remaining revised useful life
How are long-term bonds classified in accounting when they eventually become current liabilities?
As current liabilities
Test your knowledge of accounting principles with this quiz on depreciation, notes payable, long-term liabilities, and asset classification. See how well you understand concepts such as change in accounting estimates, term bonds, and the classification of property, plant, and equipment.
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