The ABCs of Accounting: Assets and Payroll

Giving equal time to two vital accounting topics, this program explains how accountants handle assets and payroll.

The video begins with the acquisition and retention of tangible fixed assets through capital expenditures and revenue expenditures. Then, methods of accounting for tangible fixed assets with respect to depreciation and disposal are presented. Allocation of an asset’s cost over its useful life is outlined, as well as five methods of depreciation. The discarding and sell-off of plant assets are also discussed, along with the amortization of intangible assets.

The video then plunges into the topic of wages, beginning with an overview of payroll expenditures and their accompanying taxes and regulations. Next, the intricacies of gross pay, net pay, and payroll-related liabilities are thoroughly sorted out, leading to a discussion of how payroll is recorded. Last, the proper treatment of fringe benefits from an accounting perspective is demonstrated.

1. Assets and Expenditures Tangible (fixed) vs. intangible (nonphysical) are two aspects in understanding assets. Three elements of costs involving assets are capital and revenue, expenditures, and depreciation.

2. Fixed Asset Depreciaton Methods of fixed asset depreciation are: straight line, units of production, declining balance, and sum of year digits. Determining cost and amortizing are elements of intangible depreciation.

3. Payroll Factors Employee payroll involves both gross and net calculations. In addition, payroll calculations have both constants (fixed) and variables (changes) in each paycheck.

Grade: 9-12

The ABCs of Accounting: Assets and Payroll (DVD)
© 2002
Time: 15 Minutes