126. The purchase of a new delivery truck for cash is an asset use transaction.
127. Recognizing depreciation expense on equipment or a building is an asset use transaction.
128. Accumulated Depreciation is a temporary account that is closed each year.
129. When depreciation is recorded on equipment, Depreciation Expense is debited and Equipment is credited.
130. With an accelerated depreciation method, an asset can be depreciated below its salvage value.
131. In choosing a depreciation method for financial reporting, a company should use the method that most closely approximates the amount of depreciation on the tax return.
132. Gains and losses are reported as non-operating items on the income statement.
133. When using the modified accelerated cost recovery system the highest amount of depreciation expense will be recognized in the year the asset is acquired.
134. The use of estimates and revision of estimates are uncommon in financial reporting.
135. Generally accepted accounting principles require that, when the estimated useful life of a long-term asset is changed, previously-issued financial statements should not be revised.