2. Distinguish clearly between real and personal property.
3. Why is it necessary to keep separate records of machinery and tools?
4. Describe the operation of the machine account where subsidiary records are kept.
5. What is the valuation formula for machinery?
6. Is there any necessity for a periodic revision of the depreciation rate?
7. State the advantages of keeping a life history of units of machinery in the subsidiary records.
8. What effect has the standardization of methods of operation and of use of machinery and tools upon the rates of depreciation of these assets?
9. Enumerate a few points that demand consideration in the calculation of the depreciation rate for a machine subject to abnormal operation.
10. When should scrap material be disposed of?
11. Due to the possibility of losing small tools, what precautions must be taken in accounting for this class of assets?