Answered: What are the estimates when calculating…

What are the estimates when calculating depreciation Which estimates may be revised What happens when you make a change in estimate

Financial Reporting, Financial Statement Analysis and Valuation

8th Edition

ISBN:9781285190907

Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Chapter8: Investing Activities

Section: Chapter Questions

Problem 1.3CIC

See similar textbooks

Related questions

Q: practice, would you expect the depreciation expense for a non-current asset to be overestimated or…

A: Depreciation is charged for non current asset being tangible asset, because of its wearing and tear…

Q: 7. Which of the following analyses might an auditor perform as part of preliminary analytical…

A: Answer- Perform a trend analysis of the ratio of depreciation expense to total depreciable long…

Q: 4. The most appropriate definition of depreciation is: A. A means of determining the decrease in the…

A: Introduction:- The following methods used to calculate depreciation as follows under:- Straight…

Q: The following statements relate to the depreciation of property, plant and equipment. Which…

A: Lets start with basic understanding. Depreciation is a reduction in value of asset due to wear and…

Q: Which of the following depreciation methods applies a uniform depreciation rate each period to an…

A: The depreciation expense is the reduction in the value of assets due to the use of that asset or…

Q: What information is found on the depreciation schedule? How can this information be verified?

Q: Estimates of an asset's salvage value and usable life are used to determine depreciation costs. Is…

A: Different methods of depreciation are based on the useful life of the asset. However, one of the…

Q: What is the systematic periodic transfer of the cost of a fixed asset to an expense account during…

A: It is a measure of the wearing out, consumption or other loss of value of depreciable asset arising…

Q: Depreciation line has a shape of?

A: Depreciation is the method of charging an amount on the book value of an asset over its useful or…

Q: different depreciation methods are used in different financial year

A: According to the concept of consistency in Accounting, accounting method used in one financial year…

Q: Which of the following is NOT a method commonly used to determine the residual value of a property?

A: 1.d) Hire an appraiser to perform a forward-looking appraisal of the property This is not an…

Q: What element must be present when determining if an asset is a depreciating asset? a. An asset…

A: Depreciation is a reduction in the value of assets due to the usage of that asset. depreciating…

Q: evising an estimate of the useful life or salvage value of a plant asset is referred to as a change…

A: Business Environment is Very Complex Sometimes Assets Life and Salvage Changes and that change is…

Q: Define Retirement and replacement depreciation methods.

A: Depreciation means decline in the estimation of benefit inside its valuable life because of mileage…

Q: When the estimate of an asset's useful life is changed, select the false statement a. depreciation…

A: Depreciation refer to fall in the value of asset every year. It is an accounting word that refers to…

Q: Is residual value deductible when using accelerated method of depreciation>

A: The accelerated method of depreciation includes double declining balance method, 150% declining…

Q: Depreciation should be applied to a new long-lived item over what time period? Explain

A: This question explains about applied to a new long-lived item over what time period.

Q: Recording depreciation each period is necessary in accordance with the Select one: a. going concern…

A: Every fixed asset loses their value over the period of time. Depreciation is charged to record the…

Q: Define accelerated depreciation method

A: Depreciation can be referred as the reduction in the fair value of an asset due to its usage over…

Q: What is the amount of the annual depreciation computed by the straight-line method?

A: Depreciation: It is the reduction in the value of an asset due to normal wear and tear,…

Q: What are the estimates when calculating depreciation? Which estimates may be revised? What happens…

A: Depreciation: It is reduction in the value of the fixed asset due to its normal wear and tear in the…

Q: Evaluate the consequences of depreciation charged on the historical cost of the assets. I)…

A: Please see the next step for the solution

Q: Provide a simple example (if you cannot find one, make up your own)

A: As ur requirement I'm providing only 5 question. Please find the answers to the above question…

Q: Why does the depreciation included in computing the annual cost of annual worth method but not in…

A: Depreciation is a separate provision for fixed assets. Fixed amount is charged out of profit during…

Q: Explain the appropriate accounting treatment required when a change in depreciation, amortization,…

A: Change in inventory method: Change in inventory method is said to be the difference between the…

Q: Depreciation is considered as accounting policy and operational expense for the accounting period.…

A: Depreciation records the usage of a fixed asset over a period of time and allocates its cost to the…

Q: How do you know the ratesw on straight line depreciation?

A: Solution:- The following way to find depreciation rates on straight line depreciation method as…

Q: What are the estimates when calculating depreciation Which estimates may be revised What happens…

A: Depreciation is non cash expenses which is charged on the fixed assets of the organisation.

Q: Which of the following is used when computing for the accounting rate of return (ARR)? a. Income…

A: The accounting rate of return is the average net income an asset is expected to generate on the…

Q: depreciation for the current year using the composite method

A: Asset name Cost Residual value Depreciable amount (Cost -Residual value) Useful life in years…

Q: Depreciation is not considered in the computation of the payback period

A: Payback period is the time required to recover the initial investment. It is computed by dividing…

Q: What are some of the simplifying conventions a company can use to calculate depreciation for partial…

A: Partial period depreciation: Partial period depreciation is calculated when acquisition and disposal…

Q: depreciation expense for past periods must be recalculated. depreciation expense for future years…

A: The right answer is option c. depreciation expense for the current and future years is changed.

Q: Compute the first-year depreciation using the straight-line method. Straight-Line Depresiation…

A: Straight line method of depreciation is that method in which business charges full cost of asset as…

Q: How depreciation has calculated all step in details?

A: Financial Statements:-These are statements prepared by the company in order to know its financial…

Q: Which of the following statements is the assumption on which straight line depreciation is based?…

A: Straight line method is the most simplest method of charging depreciation on Plant, Machines,…

Q: haracteristics of Depreciation Methods In each dropdown below is a list of common depreciation…

A: Assets: Assets are the resources of an organization used for the purpose of business operations.…

Q: In calculating depreciation, both plant asset cost and useful life are based on estimates.

A: Answer

Q: Depreciation expense is calculated using its cost, estimates of an asset's salvage value, and an…

A: Straight line depreciation formula: Depreciation = (Cost of asset - salvage value) / Life of the…

Question

What are the estimates when calculating depreciation
Which estimates may be revised
What happens when you make a change in estimate

Definition Video Definition Accounting method wherein the cost of a tangible asset is spread over the asset's useful life. Depreciation usually denotes how much of the asset's value has been used up and is usually considered an operating expense. Depreciation occurs through normal wear and tear, obsolescence, accidents, etc. Video

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

What are the estimates when calculating depreciation Which estimates may be revised What happens when you make a change in estimate, How does the change affect future calculations? Provide a simple example (if you cannot find one, make up your own)
What are the estimates when calculating depreciation Which estimates may be revised What happens when you make a change in estimate How the change affects future calculations Provide a simple example (if you cannot find one, make up your own) Cite and give credit to the author that you are citing I want the answer to the fifth question 5
What are the estimates when calculating depreciation? Which estimates may be revised? What happens when you make a change in the estimate?How the change affects future calculations?Provide a simple example (if you cannot find one, make up your own)
How do you know the ratesw on straight line depreciation?
What are the estimates when calculating depreciation? Which estimates may be revised?
How do we calculate depreciation
Compute the declining-balance depreciation schedule for an asset with thefollowing data:
Depreciation should be applied to a new long-lived item over what time period?Explain.
What is Depreciation calculation?