Present value of decommissioning and restoration costs are capitalized as PPE and with a corresponding credit to what account?
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Present value of decommissioning and restoration costs are capitalized as PPE and with a corresponding credit to what account?
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- Assets are usually valued at? a.Historical Cost b. Residual Value c. Net Realizable Value d. Replacement CostWhat amounts should be recorded as a cost of a long-term asset?The estimated economic life of an asset is also known as ________. A. residual value B. book value C. salvage life D. useful life
- Which 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 valueExplain 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?Which of the following payback methods considers the salvage value in its basic computations? a. Traditional payback b. Bailout payback c. Present value payback d. Discounted payback
- Demonstrates the difference between depreciation costs as expenses and the cash flow generated by the purchase of a fixed asset? Give an example?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 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
- 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 valueHow is depreciation calculated? Is depreciation a fixed 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.