Answered: true or false If an uninsured asset is…

true or false If an uninsured asset is destroyed by fire, the firm suffers a loss measured by the asset's estimated salvage value

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 14MC: Which of the following is true regarding special issues in accounting for long-term assets? A. An...

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Bookkeeping

Bookkeeping is the process of recording the financial transactions of a company on a regular basis. With the process of bookkeeping, companies can track important financial information that helps management in making crucial decisions.

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If an uninsured asset is destroyed by fire, the firm suffers a loss measured by the asset's estimated salvage value

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When a destroyed business asset is replaced, which of the following is true? a. The excess replacement cost over the carrying value of the destroyed asset is capitalized. b. The replacement cost is capitalized and the carrying value is deductible as loss. c. The replacement cost is capitalized and the carrying value is disregarded. d. Answer not given
True or false If you sell an asset for more than its salvage value you can record a loss for the difference?
1)If an asset value recovers after an impairment loss has been recognized for the asset, what amount of restoration of that loss is recognized?a.The difference between the original cost and the new recoverable amount.b.The difference between the original loss and the new recoverable amount.c.The difference between the carrying amount and the new recoverable amount.d.None of the recovered value is recognized.2) Occasionally, events occur that change an asset's value after purchase. Which of the following is true regarding these changes in value?a.Increases in asset value are recognized.b.Reductions in asset value are recognized.c.Both decreases and increases are recognized.d.Neither decreases nor increases are recognized.
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It is the expected selling price of a property when the asset can no longer be used by its owner. procurement value discharge value O purchase value salvage value
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TRUE OR FALSE If an intangible asset is successfully defended from a legal challenge, the incurred legal costs are capitalized to the asset account.
Why must we have an entry to remove fully depreciated fixed assets (no salvage value) from the books if there is no profit or loss on the disposal?
Under IFRS, the costs of relocating property, plant, and equipment can be capitalized as assets and depreciated over the period of expected benefit. True False