Depreciation occurs as a result of: A. Wear and tear B. Decrease in the value of assets C. Increase in the value of liability D. Decrease in capital
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A. Wear and tear
B. Decrease in the value of assets
C. Increase in the value of liability
D. Decrease in capital
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- Depreciation is generated due to a. Increase in the value of liability Ob. Decrease in capital C.Wear and tear Od. Decrease in the value of assetsDepreciation does not measure the decline in market value of an asset each period. True FalseAccumulated depreciation is record on the balance sheet as ___? A. A reduction in corresponding liability B. A reduction to the corresponding asset C. An increase in the corresponding liability D. An increase in the corresponding asset
- 8. In Investing Activities, the gross fixed assets has to added back with depreciation. a. True b. False If your answer is false, what is the correct answer:For financial accounting purposes, depreciation expense represents the decreasein an asset's fair market value. Select one: True False The total amount of depreciation taken over the life of a depreciable asset should be less if the double-declining balance depreciation method is used than if the straight-line method is used. Select one: True FalseA decrease in net assets arising from peripheral or incidental transactions is called a(n) * O capital expenditure. O cost. O loss. expense.
- Depreciation is a process that involves:a. Increasing the value of assetsb. Distributing the cost of an asset over its useful lifec. Eliminating the need for financial statementsd. Reducing the value of liabilitiesTrue or False: Depreciation is the decline in the market value of tangible fixed assets.When market value of an asset is higher than book value, depreciation is not charged. A True B False
- QUESTION 1 Which of the following events will NOT increase the demand for assets? A. Decline in wealth B. Increase in the asset return relative to other assets C. Increase in asset liquidity D. Decrease in the asset riskiness relative to other assets4. The most appropriate definition of depreciation is: A. A means of determining the decrease in the market value of an asset over time B. A means of allocating the cost of an asset over a number of accounting periods C. A means of setting funds aside for the replacement of the asset D. A means of estimating the current value of the asset(Multiple Choice Question) An impairment loss is recorded when capital asset's 1. net book value is higher than the amount it could likely be sold for 2. market value is higher than its accumulated amortization 3. market value is higher than its net book value 4. net book value is higher than its accumulated amortization