Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

1. Introduction to Accounting

Types of Accounting

Financial Accounting

1. Introduction to Accounting

Types of Accounting

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Multiple Choice

Making the right choices with your money—managing your money—involves knowing how to:

calculate depreciation using the double-declining balance method

apply principles of personal accounting to budgeting and spending

prepare consolidated financial statements for multinational corporations

conduct forensic audits for legal proceedings

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Verified step by step guidance

Understand the concept of depreciation: Depreciation is the allocation of the cost of a tangible asset over its useful life. The double-declining balance method is an accelerated depreciation method that applies a higher depreciation expense in the earlier years of an asset's life.

Identify the necessary inputs: To calculate depreciation using the double-declining balance method, you need the asset's initial cost, its useful life, and its salvage value (if any).

Determine the depreciation rate: The double-declining balance method uses a rate that is twice the straight-line depreciation rate. The straight-line rate is calculated as \( \text{Straight-line rate} = \frac{1}{\text{Useful life}} \). Multiply this rate by 2 to get the double-declining rate.

Calculate the annual depreciation expense: Multiply the book value of the asset at the beginning of the year by the double-declining rate. Note that the book value decreases each year as depreciation is applied.

Repeat the calculation for subsequent years: Continue applying the double-declining rate to the updated book value each year until the book value reaches the salvage value or the end of the useful life of the asset.