TRUE OR FALSE The term used to describe the mechanical process of allocating the cost of an intangible asset to expense over the shorter of the legal life or estimated useful life is called amortization.

Which of the following costs is not typically capitalized as part of an asset’s cost? A) initial testing costs B) Purchase price of a service contract for routine maintenance costs C) Costs of insurance during the construction period D) Transportation costs while the asset was in transit E) Installation costs

3) Which of the following best describes a depreciation base?7) The acquisition cost of an asset relative to its fair value O The estimated market value of an asset at the end of its useful life O The historical cost of an asset less the depreciation recognized to date O The amount that should be expensed over an asset's useful life

A limited-life intangible is reported at its ____________. a. replacement cost b. carrying amount unless impaired c. liquidation value d. acquisition cost

What is the difference between amortization and depreciation, and how are they applied to intangible assets?

When an item of property, plant and equipment is derecognised, the treatment of any revaluation surplus that relates to an asset includes _______. 1) debiting the revaluation surplus in the journal entry to record the profit or loss on sale of the asset 2) transferring the relevant amount out of the asset revaluation reserve and showing it as revenue in the income statement 3) transferring the revaluation surplus to retained earnings 4) writing off the amount out of the revaluation surplus against the remaining assets in the class of assets to which the asset that was sold belonged

Allocating the cost of a natural resource to the units removed is called amortization. True False 2.Costs incurred to acquire long-lived assets are capital expenditures. True False 3.Accumulated depreciation, as used in accounting, may be defined as: o An expense of doing business. o Funds (or cash) set aside to replace the asset being depreciated. o portion of the cost of plant asset recognized as expense since asset was acquired. o Earnings retained in the business.4.  On January 1, 1999, Ubot Inc. purchased a piece of equipment for $60,000. It is estimated to have an economic life of 5 years and a salvage value of $10,000. The 200% declining-balance method for depreciation is used. What is the book value of the asset at the end of year 2000 ? A. o $24,000 B. o $40,000 C. o $36,000 D. o $21,600 5.It is not necessary to disclose the maturity dates of long-term obligations on the financial statements. True False   6.The…

TRUE OR FALSE Amortization of intangibles is usually done over the asset’s legal life.

The impairment test for goodwill is conducted based on the cash-generating unit to which the goodwill has been assigned.  After an impairment loss is recorded for goodwill, the recoverable amount becomes the basis for the impaired asset and is used to calculate amortization in future periods. options : both statement false first statement true and second statement false fisrt statement false and second statement ttrue . both sttament true

Name depreciation methods that deduct residual value before an asset is depreciated.