True/False 1. a) Fixed or capital assets such as automobiles or buildings are normally fully expensed when they are purchased. b) Supplies are immaterial and therefore always expensed when purchased: For each, explain the reason for that answer please.
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True/False
1. a) Fixed or capital assets such as automobiles or buildings are normally fully expensed when they are purchased.
b) Supplies are immaterial and therefore always expensed when purchased:
For each, explain the reason for that answer please.
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- Which of the following statements about capitalizing costs is correct? A. Capitalizing costs refers to the process of converting assets to expenses. B. Only the purchase price of the asset is capitalized. C. Capitalizing a cost means to record it as an asset. D. Capitalizing costs results in an immediate decrease in net income.Expense Recoognition: What does it mean when assets are "expensed"? Why do costs do not qualify as an asset? Explain, Please.Please explain Tangible and Intangible Assets. What are types of both? Also Intangible Assets are not depreciated but amortized. Please explain the difference. What kind of intangible assets are amortized? Do Tangible and Intangible Assets show up on the Balance Sheet, if they , is do please list the order they appear. For example Current Assets appear first and in order of liquidity is that correct? Please Show in order how Assets are recorded as well as explain the difference between Tangible and Intangible and what amortization is. Thanks!
- These include both tangible assets such as (b) and intangible assets such as (c). To pay for these assets, they sell (d) assets such as (e). The decision about ...True or False: Depreciation is an example of a contra asset account.True or False _______ 1. Financial assets at amortized cost shall be measured at fair value through profit or loss. _______ 2. Transaction costs include fees and commission paid to agent, levies by regulating authorities, transfer taxes and duties. _______ 3. As a rule, transaction costs that are directly attributable to the acquisition of a financial asset should be capitalized as cost of the financial asset. _______ 4. Financial assets held for trading are reported at cost. _______ 5. The stockholder theoretically realized income from dividend at the data of record. _______ 6. As investee is an entity over which the investor has significant influence. _______ 7. Trading bond investment are reported at face amount. _______ 8. A gain or loss on sale of trading bond investment is the difference between sale price and fair value. _______ 9. The interest rate written on the face of the bond is known as nominal rate. _______ 10. Major spare part and standby equipment which are expected…
- Which of the following is not a capital asset? O a. Equipment O b. Vehicle O c. Expenses O d. BuildingWhich one of the following category outstanding expenses belong to? a. Intangible asset b. Current liability c. Non-current asset d. Current asset fast1. How do we decide whether to capitalize (record as an asset) or expense a particular cost? 2. Provide one example of each to capitalize (record as an asset) or expense a particular cost.
- Which of the following statements about capitalizing costs is correct?A. Capitalizing costs refers to the process of converting assets to expenses.B. Only the purchase price of the asset is capitalized.C. Capitalizing a cost means to record it as an asset.D. Capitalizing costs results in an immediate decrease in net income.8. Normal repair and maintenance of an asset is an example of what? a.Revenue expenditure b.Capital expenditure c.An expenditure that will be depreciated d.An expenditure that should be avoidedThe generally accepted accounting principle that supports recording the value of a property at the purchase price when the market value is higher is the: A. conservatism principle B. going concern principle C. monetary principle D. cost principle