Accounting Question Did I get this right?
Buy a car for $100 cash, PPE on January 1st. 10 year straight line depreciation. What happens to the three income statements on Dec 31st?
Is this just depreciation?
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do you mean what happens to the three "financial statements" on Dec 31st?
yes three financial statements. sorry bout that. haha
YESSSSSSSSSSS so they didn't reject me for my technicals...
F YOU FIT!
That would occur on January 1st, not December 31st...
I thought of that after the fact and I'm admittedly less confident in my answer now. The journal entry for CapEx would definitely occur on the 1st, but I think you should still be mentioning CapEx because for the yearly period, the CapEx at Jan 1 would still be captured when you prepare the actual statements on Dec 31.
I've actually been asked this exact question and the guy told me not to forget CapEx, but analysts certainly aren't infallible.
so who's right?
right after i finished up talking about depreciation my interviewer cut me off so it didn't seem like he wanted that other stuff.
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