The depreciation expense is generally estimated based on some assumption such as percentage of sales or from a depreciation schedule. True False
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- Which of the following statements relating to the Accumulated Depreciation account is correct? Select one: O a. The normal balance of the Accumulated Depreciation account is a debit balance. O b. The Accumulated Depreciation account allows the accountant to determine the precise market value of the related asset. O c. The Accumulated Depreciation account is classified as a Liability account. O d. The balance in Accumulated Depreciation account reflects the portion of the historical cost of the asset that has become expense since the item was purchased.Is the Accumlated Depreciation and Depreciateion expense both positive numbers?Explain how depreciation expense satisfies the definition of an expense
- Q. What are the effects of depreciation on the profit and loss account and balance sheet?True or False: Depreciation is an example of a contra asset account.Which one of the following is not one of the factors in computing depreciation? Cost price Inadequacy Salvage value Exchange price Which of the following account is debited when account payable is converted into note payable? 直
- The cost of an asset that is subject to depreciation is called a.depreciable cost. b.trade-in value. c.salvage value. d.revenue.Accounting is not as precise and objective as it is sometimes portrayed as being. There are areas where subjective judgement required. What judgements must be made to calculate a depreciation expense for a period?Accounting depreciation can be broken into two categories. How?
- For financial accounting purposes, depreciation expense represents the decreasein an asset's fair market value. Select one: True False The total amount of depreciation taken over the life of a depreciable asset should be less if the double-declining balance depreciation method is used than if the straight-line method is used. Select one: True FalseAccumulated Depreciation is a permanent account. True FalseDepreciation 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 asset