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

3. Accrual Accounting Concepts

Adjusting Entries: Depreciation

Financial Accounting

3. Accrual Accounting Concepts

Adjusting Entries: Depreciation

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Multiple Choice

Tax depreciation in the United States is currently calculated under which system?

Straight-Line Depreciation System

Sum-of-the-Years'-Digits Method

Units-of-Production Method

Modified Accelerated Cost Recovery System (MACRS)

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Verified step by step guidance

Understand the concept of tax depreciation: Tax depreciation is a method used to allocate the cost of tangible assets over their useful life for tax purposes.

Learn about the Modified Accelerated Cost Recovery System (MACRS): MACRS is the current system used in the United States for calculating tax depreciation. It allows for accelerated depreciation, meaning higher depreciation expenses in the earlier years of an asset's life.

Compare MACRS with other methods: Unlike Straight-Line Depreciation, Sum-of-the-Years'-Digits Method, or Units-of-Production Method, MACRS uses specific depreciation schedules and percentages based on asset classes defined by the IRS.

Understand the classification of assets under MACRS: Assets are categorized into classes such as 3-year, 5-year, 7-year, etc., depending on their type and use. Each class has a predefined depreciation schedule.

Review the importance of MACRS in tax reporting: MACRS is essential for businesses to calculate depreciation for tax purposes, as it impacts taxable income and the amount of taxes owed.