The 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. Fluctuation
Q: Which of the following statements is not correct? Multiple Choice The cost less the salvage…
A: Expenses: Expenses are costs incurred for the operations of a business. The costs incurred for…
Q: An asset's book value or carrying value is its: Multiple Choice O accumulated depreciation. cost…
A: The book value or carrying value of the machine is the value that carries on the balance sheet of…
Q: what isAccumulated Depreciation-F&F, Accumulated Depreciation-Eqpt,, Depreciation Expense-F&F,…
A: Accumulated Depreciation - Accumulated Depreciation is the depreciation accumulated over the useful…
Q: The term that applies when an intangible asset is expensed over time rather than fully expensed at…
A: Any tangible fixed asset purchased has a fixed life throughout which it has to be used. Over the…
Q: Which of the following doesn't represent depreciation Select one: O a. It is the process of…
A: Depreciation is an accounting method that allows a company to write off an asset's value over a…
Q: Residual value is: A. Also called residual value. B. Also called scrap value. C. An estimate of the…
A: The depreciation expense is charged on fixed assets as reduced value of the fixed asset with usage…
Q: Which one of the following category outstanding expenses belong to? a. Intangible asset b. Current…
A: Outstanding expenses are those expenses which have been incurred during the period but not yet paid.…
Q: What type of depreciation expense pattern is used under eachof the following methods and when is its…
A: or
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: The difference between book value of the asset with the proceeds received from its sale, will…
A: The book value of the asset is the cost of the asset less accumulated depreciation.
Q: which method of depreciation is used when the cost of an asset is written off in equal amounts over…
A: Depreciation represents the reduction in the value of an asset over an expected life.
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: The depreciation method that applies a constant percentage to depreciable cost in calculating…
A: Every fixed assets lose out their value over the period of time. Depreciation means allocation of…
Q: Which of the following amortization methods is most likely to evenly distribute the cost ofan…
A: Depreciation by straight line method = (cost of the assets -salvage value) / useful life of the…
Q: ‘carrying value’ of a depreciable asset is the difference between
A: Carrying value of an asset gives value of Company's asset as on given date after provision of wear…
Q: Depreciation is a process of cost allocation, not valuation. Explain this statement.
A: Depreciation: Depreciation expense is a non-cash expense, which is recorded on the income statement…
Q: The three factors in cost allocation of a depreciable asset are service life, allocation base, and…
A: Cost accounting system: Cost accounting system of an organization consists of procedures and…
Q: Which of the following is not part of the definition of an asset O a. Control of a resource O b.…
A: Asset can be defined as a resource controlled by the entity as a result of past events from which…
Q: Impairment loss is a situation when Select one: a. Carrying amount of an asset is greater than…
A: The greater of the following two values are the recoverable amount of an asset: Fair value minus…
Q: After recognition, exploration and evaluation assets are accounted for under the cost model…
A: There are two methods are prescribed by IAS 16 Property, Plant and Equipment for acccount for the…
Q: The book value of an asset is defined as ____________________. a. Estimated fair market value b.…
A: Book Value of an asset is the measure of the historical cost of an asset decreased by the total…
Q: Evaluate the consequences of depreciation charged on the historical cost of the assets. I)…
A: Please see the next step for the solution
Q: Which of the following is an essential step in the case of cost/income equivalents for comparing…
A: In financial analysis there is need of comparisons between machines to select most economically…
Q: Which one of the following category outstanding expenses belong to? a. Intangible asset b. Current…
A: Outstanding expenses means those expenses which pertains to current period and recorded in the…
Q: Which of the following best describes the higher of an asset's net selling price and its value in…
A: Asset's net selling price is the amount obtainable from the sale of assets less any disposal cost.…
Q: When a number of low-cost depreciable assets with similar characteristics, service lives, and…
A: Group depreciation refers to that method of charging depreciation where the assets having similar…
Q: Depreciation can be defined as the measure of cost or revalued amount of economic benefits of a…
A: Depreciation can also be defined as: It records the usage of a fixed asset over a period of time and…
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: The factors used to compute depreciation expense are an asset's: O Cost, residual value, and service…
A: Depreciation expense is the amount which shows the decrease in the value of asset over its useful…
Q: A right of use asset is initially measured at costs and subsequently measured using the A. Cost…
A: An asset is the resource owned by the company for using it in the future.
Q: Th e valuation technique under which assets are recorded at the amount that would be received in an…
A: The assets of a business can be recorded by valuation using current cost basis or the market value…
Q: In financial statements, the fixed assets are shown at ... Select one: O a. Market price O b. None…
A: The GAAP is briefly known as the Generally Accepted Accounting Principles are the guidelines to be…
Q: The relevant factor(s) in computing depreciation include: A. Cost. B. Residual value. C. Useful…
A: Depreciation is a use of an asset. It is the value of an asset which has been utilized in the…
Q: In all cases, net property, plant and equipment (PP&E) should be calculated as the gross PP&E less…
A: Solution: Gross PP &E = Cost of purchase of PPE Accumulated depreciation = Depreciation…
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: ame depreciation methods that deduct residual value before an asset is deprecia
A: Solution: Following are depreciation methods that deduct residual value before an asset is…
Q: In calculating depreciation, both plant asset cost and useful life are based on estimates.
A: Answer
Q: Which depreciation method ignores residual value when computing the depreciable base of an asset?…
A: Option B is correct. Double declining balance method Double declining method ignores residual value…
Q: Asset measurements in conventional financial statements are confined to historical cost. are…
A: Historical cost basis Most of the transitional accounting concept which was used for the historical…
Q: According to historical cost principle, the assets and liabilities should be reported (tick…
A: Assets and liabilities are the part of the balance sheet of a company. They help in determining the…
Q: 1. It is a depreciation method based on the assumption that the value of a property is directl…
A: Note: “Since you have asked multiple question, we will solve the first question for you. If you want…
Q: Which of the following is not an asset utilization ratio
A: Asset Utilization Ratio: This ratio computes the total sales/revenue earned for every dollar of…
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- 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 aboveAssets are usually valued under which basis? A. replacement costB. historical costC. net realizable valueD. present valueWhich of the following best describes the higher of an asset's net selling price and its value in use? Select one: a. Recoverable amount b. Depreciable amount c. Revalued amount d. Carrying value
- Depreciation is a process of Select one Oa. asset valuation D. cost allocation C Cost accumulation. d. asset devaluation. e. The answer does not exstAssets are usually valued at? a.Historical Cost b. Residual Value c. Net Realizable Value d. Replacement CostThe ‘carrying value’ of a depreciable asset is the difference between ____? a. Depreciation and accumulated depreciation b. Cost and accumulated depreciation c. Cost and depreciation d. None of the above
- 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.Which of the following is not part of the definition of an asset O a. Control of a resource O b. Resulting from a past event O c. Inflow of economic benefits Od. During the accounting periodThe amount of asset cost assigned as an expense to a particular period is called: a. Depreciation b. Reserves c. Loss of credit d. Provisions
- 25) The amount of asset cost assigned as an expense to a particular period is called: a. Loss of credit b. Depreciation c. Provisions d. ReservesDepreciation expense under the invenroty system is a. Based on cost minus residual value b. Basically a FIFO approach to depreciable asset accounting c. The result of applying a depreciation rate to the original cost d. A measure of the change in the value of the depreciable assetThe book value of an asset is equal to the: a. asset's market value less its historical cost b. book value relied on by secondary markets c. replacement cost of the asset d. asset's cost less accumulated depreciation