Straight-line depreciation per annum is defined as: a. Initial Cost / Useful Life b. Initial Cost c. Useful Life d. Initial Cost - Useful Life e. Initial Cost + Useful Life
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- Depreciated replacement cost is equal to the * a. Sound Value b. Net appreciation c. Depreciable amount d. Carrying amountThe formula for straight-line depreciation is O service life/(cost + residual value). O cost/service life. O(cost + residual value)/service life. O(cost - residual value)/service 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.
- For the composite method, the composite a. rate is the total cost divided by the total annual depreciation. b. rate is the total annual depreciation divided by the total depreciable cost. c. life is the total cost divided by the total annual depreciation. d. life is the total depreciable cost divided by the total annual depreciation.What refers to the present worth of cost associated with an asset for an infinite period of time? Select one: a. payback period b. capitalized cost c. incremental cost d. operating costThe estimated economic life of an asset is also known as ________. A. residual value B. book value C. salvage life D. useful life
- The time an asset is expected to last is called its a.fiscal period. b.depreciation. c.useful life. d.net loss value.Determine the following; A.)Depreciation rate, in %. B.)Value of A. C.)Value of B.An estimate of a plant asset's value at the end of its useful life, is knowing as. Select one: a. Book value O b. Residual value O c Depreciable cost O d Cost
- An 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 valueThe depreciation method that applies a constant percentage to depreciable cost in calculating depreciation is Select one: a. none of these. b. straight-line. c. declining-balance. d. units-of-activity.Assuming an increase in price levels over time, which of the following asset valuations will produce the highest return on assets? a. Net book value b. Gross book value c. Replacement cost d. Depreciated replacement cost