Define Market Value? A. The combined cost of purchase and installation of an asset can be depreciated minus its salvage value B. The worth of a physical asset's components when the asset itself is deemed no longer usable C. Represents the value of a company according to the stock market D. The estimated resale value of an asset at the end of its useful life

Define Market Value? A. The combined cost of purchase and installation of an asset can be depreciated minus its salvage value B. The worth of a physical asset's components when the asset itself is deemed no longer usable C. Represents the value of a company according to the stock market D. The estimated resale value of an asset at the end of its useful life

Name: i need the answer quickly Define Market Value? A. The combined cost of
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Description: i need the answer quickly Define Market Value? A. The combined cost of purchase and installation of an asset can be depreciatedminus its salvage value B. The worth of a physical asset's components when the asset itself is deemed nolonger usable C. Re

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter7: Operating Assets

Section: Chapter Questions

Problem 12MCQ: Which of the following statements is true? a. The fixed asset turnover ratio assists managers in...

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Which of the following statements if not true? a. Depreciation is the process of allocating the purchase price of an asset minues its residual value to expense, for each period benefited by the asset. b. The cost of an asset includes all acquisition costs necessary to obtain the benefits to be derived from the asset. c. The service life of an asset is the measure of the number of years of service expected from the asset before its disposal. d. The residual value of an asset is the difference between the expected book value of the asset at the end of its service and the cost of disposal.
Which of the following best describes depreciation?A It is a means of spreading the payment for the asset over its total estimated lifeB It represents the decline in the market value of the assetC It is a means of spreading the cost of an asset over its estimated useful lifeD It is a way of estimating the cash needed to replace the asset in the future
Which of the following values for an intangible asset would a company capitalize and amortize? a.) purchase price b.) research costs c.) residual value d.) development costs
Explain the historical cost concept as it applies to long-term operational assets. Why is the book value of an asset likely to be different from the current market value of the asset?
Profit on sale of fixed assets arises when: Sale price is more than the original purchase value of the asset Sale price is more than the depreciated value of the asset Sale price is more than the cumulative depreciation value of the asset Cumulative depreciation value is more than the current depreciated value of the asset
What is the difference between the cost of a fixed asset and its accumulated depreciation called? Group of answer choices book value current value fixed value equity value
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 cost
In a replacement analysis, the market value of the currently owned asset a. does not impact the cash flows of the replacement asset(s) in the opportunity cost approach b. does not impact the cash flows of the current asset in the cash flow approach if the current asset is kept c. is treated as a salvage value for the current asset in the cash flow approach if the current asset is kept d. is added to the first cost of the replacement asset(s) in the opportunity cost approach.
Which method of deprecaution is used when the cost of an asset is written off in equal amounts over its expected economic life? A fixed instalment B accelerated C sum of the digits D diminishing balance
Why is depreciation expense recognized? Select one: a. To provide a better estimate of the market value of the depreciated assets. b. So that the balance sheet value of plant assets will more accurately reflect the replacement cost of the assets. c. To ensure that cash will be available at the end of the assets' useful life in order to replace it. d. To match the cost of the asset against the revenue using a reasonable allocation. method. Save AnswersNext
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
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.