FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Revising an estimate of the useful life or salvage value of a plant asset is referred to as a change in accounting estimate and only affects current and future financial statements.
true or false
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- why is there a need to re evaluate impairment of assets due to trigger events?arrow_forwardIn accounting, which statement accurately reflects the Historical Cost Accounting concept and its implications for financial reporting? a ) Historical Cost Accounting records assets at their original purchase price. b) Historical Cost Accounting adjusts asset values based on current market prices. c) Historical Cost Accounting emphasizes future projected values for assets. d) Historical Cost Accounting disregards the original purchase price of assets.arrow_forwardDepreciation occurs as a result of: A. Wear and tearB. Decrease in the value of assetsC. Increase in the value of liabilityD. Decrease in capitalarrow_forward
- Recording depreciation for a plant asset conforms to which accounting principle/assumption? OA. Matching Principle B. Time Period Assumption OC. Full Disclosure Principle OD. Revenue Recognition Principle***arrow_forwardWhich among the following does not hold good for Historical cost accounting? a. Historical cost is relevant for making economic decisions b. Sufficient provision for depreciation is made in historical cost accounting c. Historical cost accounting survives test of time. d. Historical cost is less subject to manipulation.arrow_forwardWhat serious consequences occur in an inaccurate estimate of asset needs?arrow_forward
- Standby equipment held for use in the event of a breakdown of regular equipment is reported as property, plant, and equipment on the balance sheet. True Falsearrow_forwardWhy there is different depreciation method in accounting. Explain it by giving example about each method. ( 2- There are different receivable write off methods. Explain the differences between each method by given and example. 3- Explain the importance of capitalization on depreciation expenses by given an example. plagiarism not allowedarrow_forwardWhich of the following statements is FALSE? Some intangible assets are not required to be amortized. Research and development expenditures are expensed as incurred because of the uncertainty regarding their future cash flows. Amortization expense is generally recorded with a credit to the Accumulated Amortization account. Internally generated goodwill is not capitalized in the accounts.arrow_forward
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