Residual value of an asset refers to the amount that it can fetch at the Oa. End of its life Ob. Beginning of its life OC.Middle of its life d. Opening date
Q: Which of the following methods applies a declining depreciation rate each period to an asset's…
A: Sum-of-the-years' digits Method: Calculating the predicted depreciation of an asset over time using…
Q: An estimate of a plant asset's value at the end of its useful life, is knowing as. Select one: a.…
A: An estimate of a plant assets value at the end of its useful life is knowing as Residual value.
Q: What is the correct process for determining depreciation expense for partial periods? A: The…
A: Lets understand the basics. Depreciation is a reduction in value of asset due to wear and tear,…
Q: the asset Monthly depreciation expense on
A: Depreciation of an asset with no salvage value = 1/12 * Cost of the fixed asset/Expected useful life…
Q: Accumulated depreciation is: The depreciation expense recorded on an asset to date. The…
A: Accumulated depreciation is the cumulative depreciation of an asset up to a single point in its…
Q: a) Calculate total accumulative depreciation of each asset until the sold Hint: Review Class 15…
A: a) Assets Purchased Date Cost Sold Date Useful Life An asset in use(in years) Depreciation Year…
Q: Cost of property asset minus accumulated depreciation is equal to net book value. T/F
A: The depreciation expense is charged on fixed assets as reduced value of the fixed asset with usage…
Q: The depreciation method in which the depreciable cost of an asset is apportioned equally over its…
A: The depreciation is a decline in the value of tangible assets over their useful life. it is a…
Q: Depreciation is: Oa. the loss in market value of an asset. Ob. the allocation of a long-term asset's…
A: Depreciation is an accounting method for reducing the total amount of a tangible or physical asset…
Q: 27) Depreciation expense for a period is the a. original cost of an asset – accumulated…
A: Depreciation costs or expenses are the costs charged to fixed resources based on the portion that…
Q: Compute depreciation under units-of-activity method. structions a. Compute the depreciable cost per…
A: Depreciation means fall in the value of tangible fixed assets because of its usage or with efflux of…
Q: The process of transferring the cost of an asset to an expense account over time is called O A)…
A: Property, plant, and equipment: These assets are long lived economic resources which are owned by…
Q: Over the life of a depreciable asset, its recorded cost decreases, the related accumulated…
A: Asset is recorded in the books of account at cost which is depreciated over the useful life of an…
Q: Initial operating loss related to Property, Plant and Equipment should be A. Capitalized as part of…
A: Answer:- Operating loss:- If a company's operational expenditures surpass its gross earnings, the…
Q: Which depreciation method calculates annual depreciation expense based on the book value of an…
A: The regular fall in the worth of an asset due to its usage is known as depreciation.
Q: Cash Flow Asset End of Year Amount Appropriate Required Return B 1 through Infinity $300 15% using…
A:
Q: Assets used to generate revenue for a period longer than one year are called :Select one A. Fixed…
A: Assets indicate the resources owned by the company and shows in the balance sheet which represent…
Q: Depreciationa. is calculated by the department that uses the fixed asset.b. allocates the cost of…
A: Definition: Fixed Assets: It refers to the long-term assets having a useful life of more than a year…
Q: A period between original acquisition and final disposal of an asset over its succession of owners.…
A: Assets are the rights and resources of the business, on which it has right to use and right to sell.…
Q: In which method depreciation is charged on the book value of asset and book value is decreased each…
A: The depreciation expense is charged on fixed assets as reduction in value with the passage of time.
Q: True or False: Using the MACRS method of depreciation, an asset's Book Value will depreciate to $0…
A: MACRS is also written as modified accelerated cost recovery system. It is used to depreciate the…
Q: When natural resources are used, the expense account is increased for a portion of the cost of…
A: Depletion expense is a reduction in the value of assets due to the usage of that asset. We can…
Q: Residual value is O a. Present value. O b. Value in use. O . The net cash amount that is received…
A: The fixed assets may have a residual value that can be attained at the end of its life.
Q: Under what depreciation method(s) is an asset’s bookvalue used to calculate depreciation each…
A: Depreciation: Depreciation is a method of reducing the capitalized cost of long-lived operating…
Q: The value of the asset at the end of the useful life is called O a. Book value O b. Useful life O c.…
A: Option A-Book Value: It is the Value of Assets which shown in the books after depreciation.This…
Q: An estimate of how an asset will be used up over its useful life is known as what? a.…
A: Introduction: Depreciation: Decreasing value of fixed assets over its useful life period called as…
Q: The depreciation method in which the depreciable cost of an asset is apportioned equally over its…
A: a) in straight line method of depreciation Depreciation will be apportioned equally over its life…
Q: A plant asset's book value equals its estimated salvage value: A. On the date of the asset's…
A: Depreciation on a depreciable asset is computed after considering its salvage value so that at the…
Q: The cost incurred to extend an asset's useful life is recorded as Oa. routine expenditures. Ob.…
A: All expenses that are incurred to increase the future economic benefits are known as capital…
Q: Salvage value is: O Also called residual value O Also called scrap value O An estimate of the…
A: Solution: salvage value is the value of an asset remaining after it has been fully depreciated. It…
Q: When computing depreciation expence of PPE, both straight-line depreciation method and the…
A: Option A is incorrect because under straight line method, depreciation will be the same during the…
Q: a. What is the Book Value (BV) of the asset at the end of the fourth year using the SL method? b.…
A: a) Schedule of depreciation under Straight line method: Depreciation under WDV = (75000-5000)/10 =…
Q: Depreciation of an asset based on the number of hours of usage is a(n): a. Time-based method b.…
A: Depreciation is a non cash expenses which is charged for reduction in value of asset over the useful…
Q: It charges the same amount of expense to each period of the asset's useful life. This referes to…
A: Solution- Straight line depreciation is a common method of depreciation where the value of a fixed…
Q: The time an asset is expected to last is called its a.fiscal period. b.depreciation. c.useful life.…
A: Assets: Assets are the resources of an organization used for the purpose of business operations.…
Q: t End of year Amount Appropriate Required Return A 1 $5,000 18% 2 $5,000 3…
A: PV function computes present value for the given interest rate (RATE), no. of periods (NPER) and…
Q: The estimated economic life of an asset is also known as ________. A. residual value. B.…
A: Estimated life refers to the estimated economic life or useful life which means the assets will be…
Q: Which of the following depreciation methods applies a uniform depreciation rate each period to an…
A: Depreciation is a way of declining the cost of assets over the useful life of assets, the company…
Q: The allocation of the cost of a tangible asset to expense in the periods in which the asset is used…
A: Tangible assets are physical assets of a company such as land, building, machine which is used to…
Q: Which of the following statements is true when the straight-line method is used to compute…
A: Using Straight line method , Amortization Expense = Amortization cost / Asset's estimated useful…
Q: End of year Amount Appropriate Required Return D 1 through 5 $1,500 12% 6 $8,500 By using cell…
A: In this we need to find the present value of cash flow and that would be the value of asset D.
Q: In calculating depreciation, both plant asset cost and useful life are based on estimates.
A: Answer
Q: For accounting purposes, depreciation refers to the process of ________. A. estimating an…
A: Depreciation is an accounting technique for distributing a tangible or fixed asset's cost over its…
Q: End of year a. Determine the as Asset turnover
A:
Q: using the reducing-balance basis atthe rate of 30%, would be arriv Select one: O a. 30% x (cost of…
A: Reducing Balance Method: The reducing-balance methodology, also referred to as the declining-balance…
Q: Asset End of year Amount Appropriate Required Return D 1 through 5 $1,500 12% 6…
A: Present value of annuity is the current value of the future payments that are calculated using the…
Residual value of an asset refers to the amount that it can fetch at the
Oa. End of its life
Ob. Beginning of its life
OC.Middle of its life
d. Opening date
Step by step
Solved in 2 steps
- The time an asset is expected to last is called its a.fiscal period. b.depreciation. c.useful life. d.net loss value.The estimated economic life of an asset is also known as ________. A. residual value. B. book value. C. salvage life. D. useful life.Residual value is O a. Present value. O b. Value in use. O c. The net cash amount that is received from the ultimate sale of the asset, at the end of its life. O d. The gross cash amount that is received from the ultimate sale of the asset, at the end of its life.
- Residual value is: A. Also called residual value.B. Also called scrap value.C. An estimate of the asset's value at the end of its benefit period.D. A factor relevant to determining depreciation.E. All of these.According to historical cost principle, the assets and liabilities should be reported (tick whichever apply)? a.At their market value b.At their cost of acquisition c.At their replacement value d.All of the aboveWhat amounts should be recorded as a cost of a long-term asset?
- End of year a. Determine the as Asset turnoverThe allocation of the cost of a tangible asset to expense in the periods in which the asset is used is termed as: Select one: a. Depreciation b. None of the given options c. Appreciation d. Fluctuation13. Depreciation expense for a period is the a. original cost of an asset - accumulated depreciation. b. book value of the asset + useful life. c. portion of an asset's cost that expired during the period. d. market value of the asset + useful life.
- Which depreciation method calculates annual depreciation expense based on the book value of an asset? a. double-declining balanceb. sum-of-the-years'-digitsc. inventory systemsd. group depreciationA period between original acquisition and final disposal of an asset over its succession of owners. O a. Useful life O b. Ownership life O c. Physical life O d. Asset lifeAn estimate of how an asset will be used up over its useful life is known as what? a. Depreciation rate b. Impairment value c. Useful life d. Salvage value