FNEC-1600 Study Guide - Quiz Guide: Defined Benefit Pension Plan, Fokker E.Ii, Financial Statement

• School: Vanderbilt University
• Department: Financial Economics
• Course: FNEC-1600
• Professor: Trentham Brent

Document Summary

Multiple choice topics: (20 points: characteristics of each depreciation method, straight line a. i. (cost - salvage value)/ life = annual depreciation a. ii. Straight line rate = 1/useful life: units of production b. i. (cost - salvage value)/ production life = depreciation rate b. ii. Depreciation rate x actual production = annual depreciation: double declining balance c. i. Determine declining balance rate (twice straight line) c. ii. Ddb rate x book value = depreciation for that year (1/useful life) x 2: uses d. i. Straight line is used more to show a constant amount of depreciation throughout the asset"s life. Consistent with decreasing rate of decline and decreasing amount for depreciation expense. Units of production based on measure of asset"s use and the periodic depreciation expense rise and fall with asset"s use. Based on pattern tailored to individual use: understand and identify different types of long-term assets (fixed, intangibles, natural resources) and how the cost of these assets is expensed, fixed assets a. i.