Essay The following answers point out the key phrases that should appear in students’ answers. They are not intended to be examples of complete student responses. It might be helpful to provide...

Essay

The following answers point out the key phrases that should appear in students’ answers. They are not intended to be examples of complete student responses. It might be helpful to provide detailed instructions to students on how brief or in-depth you want their answers to be.

150. If a company initially records an expense incorrectly as an asset, explain how this mistake affects the income statement and the balance sheet.

151. Why don’t we depreciate land? What are land improvements? Why do we record land and land improvements separately?

152. Explain how the accounting treatment differs between purchased and internally developed intangible assets.