This course focuses on Property, Plant, and Equipment (PPE) — also known as plant assets, fixed assets, or depreciable assets. You’ll learn what PPE includes, how to properly record these assets, and how to apply multiple depreciation methods, including straight-line, double-declining balance, and units of production. We’ll discuss the pros and cons of each method, strategies for structuring depreciation problems, and the importance of understanding accumulated depreciation and book value in context.
Additionally, the course covers the differences between capital expenditures and revenue expenditures, the process for disposing of fixed assets, and journal entries related to PPE transactions. You'll also explore changes in accounting estimates for depreciation and work through a comprehensive problem, reinforcing the key terms and concepts essential for mastering this critical area of accounting.