What refers to the present worth of cost associated with an asset for an infinite period of time? Select one: a. payback period b. capitalized cost c. incremental cost d. operating cost
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What refers to the present worth of cost associated with an asset for an infinite period of time?
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- True or false Amortization is the spreading out of a cost over a period of time ?Assuming an increase in price levels over time, which of the following asset valuations will produce the highest return on assets? a. Net book value b. Gross book value c. Replacement cost d. Depreciated replacement costWhich of the following terms accurately describe what a resource is worth in its next- best use. a. Sunk cost b. Opportunity cost c. Incremental cash flow d. Externality
- Assets are usually valued at? a.Historical Cost b. Residual Value c. Net Realizable Value d. Replacement CostWhat is the systematic periodic transfer of the cost of a fixed asset to an expense account during its expected useful life called (also thought of as the decline in usefulness of the fixed asset over time)? Group of answer choices fixing costing amortization depreciationWhich of the following methods should be used when the expected benefits to be received from an asset will decline each period? a. Straight-line b. Units-of-production c. Sum-of-the-years'-digits d. Compound-interest
- Residual value is: A. Also called residual value.B. Also called scrap value.C. An estimate of the asset's value at the end of its benefit period.D. A factor relevant to determining depreciation.E. All of these.Explain the historical cost concept as it applies to long-term operational assets. Why is the book value of an asset likely to be different from the current market value of the asset?Which one of the following is the proper dollar value of existing equipment to use in replacement analysis? A. Original cost B. Present market value if sold C. Present trade-in value D. Present book value E. Present market value if sold minus removal and selling expenses
- What amounts should be recorded as a cost of a long-term asset?An estimate of how an asset will be used up over its useful life is known as what?Which of the following best describes the higher of an asset's net selling price and its value in use? Select one: a. Recoverable amount b. Depreciable amount c. Revalued amount d. Carrying value