tailieunhanh - Ebook Financial accounting (7e): Part 2

(BQ) Part 2 book "Financial accounting" has contents: Plant assets; natural resources, and intangible assets; liabilities; corporations - organizations, stock transactions, dividends, and retained earnings; statement of cash flows,.and other contents. | 8/4/09 9:39 PM Page 396 9 Plant Assets, Natural Resources, and Intangible Assets Chapter STUDY OBJECTIVES After studying this chapter, you should be able to: 1 Describe how the cost principle applies to plant assets. 2 Explain the concept of depreciation. 3 Compute periodic depreciation using different methods. 4 Describe the procedure for revising periodic depreciation. 5 Distinguish between revenue and capital expenditures, and explain the entries for each. 6 Explain how to account for the disposal of a plant asset. 7 Compute periodic depletion of natural resources. 8 Explain the basic issues related to accounting for intangible assets. 9 Indicate how plant assets, natural resources, and intangible assets are The Navigator reported. ✓ The Navigator Scan Study Objectives ■ Read Feature Story ■ Read Preview ■ Read text and answer p. 402 ■ p. 409 Do it! ■ Work Comprehensive p. 412 Do it! ■ p. 417 p. 421 p. 422 ■ ■ ■ Review Summary of Study Objectives ■ Answer Self-Study Questions ■ Complete Assignments ■ ✓ Feature Story HOW MUCH FOR A RIDE TO THE BEACH? It’s spring break. Your plane has landed, you’ve finally found your bags, and you’re dying to hit the beach—but first you need a “vehicular unit” to get 396 7/31/09 4:20 PM Page 397 you there. As you turn away from baggage claim you see a long row of rental agency booths. Many are names you are familiar with—Hertz, Avis, and Budget. But a booth at the far end catches your eye—Rent-A-Wreck (). Now there’s a company making a clear statement! Any company that relies on equipment to generate revenues must make decisions about what kind of equipment to buy, how long to keep it, and how vigorously to maintain it. Rent-A-Wreck has decided to rent used rather than new cars and trucks. It rents these vehicles across the United States, Europe, and Asia. While the big-name agencies push vehicles with that “new car smell,”