Which method of deprecaution is used when the cost of an asset is written off in equal amounts over its expected economic life? A fixed instalment B accelerated C sum of the digits D diminishing balance
Q: Which of the following methods applies a declining depreciation rate each period to an asset's…
A: Sum-of-the-years' digits Method: Calculating the predicted depreciation of an asset over time using…
Q: The average carrying value (or average investment) of an asset with no salvage value is equal to:…
A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: Statement 1: In impairment loss, the discount rate being used is the current pretax rate that…
A: Ans. While computing impairment loss it is necessary that the cash flows are adjusted and multiplied…
Q: a) Calculate total accumulative depreciation of each asset until the sold Hint: Review Class 15…
A: a) Assets Purchased Date Cost Sold Date Useful Life An asset in use(in years) Depreciation Year…
Q: assets are amortized a. using straight-line method applied to the shorter of an intangible asset's…
A: Intangible Assets - It is an assets which are not in physical in nature. for example patent,…
Q: which method of depreciation is used when the cost of an asset is written off in equal amounts over…
A: Depreciation represents the reduction in the value of an asset over an expected life.
Q: The process of transferring the cost of an asset to an expense account over time is called O A)…
A: Property, plant, and equipment: These assets are long lived economic resources which are owned by…
Q: Initial operating loss related to Property, Plant and Equipment should be A. Capitalized as part of…
A: Answer:- Operating loss:- If a company's operational expenditures surpass its gross earnings, the…
Q: Which of the following depreciation methods will result in the most depreciation expense over the…
A: Depreciation is method to allocate the cost of the Assets over its useful life
Q: Which of the following amortization methods is most likely to evenly distribute the cost ofan…
A: Depreciation by straight line method = (cost of the assets -salvage value) / useful life of the…
Q: Which statements are correct concerning measurement of cost of property, plant and equipment?
A: Concerning measurement of cost of property, plant and equipment Property, plant, and equipment are…
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: True or False: Using the MACRS method of depreciation, an asset's Book Value will depreciate to $0…
A: MACRS is also written as modified accelerated cost recovery system. It is used to depreciate the…
Q: The gain on impairment loss reversal of an asset which is recognized in profit or loss is computed…
A: The loss of impairment is recognized in the income account and the reversal of the impairment loss…
Q: Which combination of depreciation methods and useful lives is most conservative in the year a…
A: As compare to other combination methods of depreciation, Declining balance depreciation with a long…
Q: The book value of an asset is defined as ____________________. a. Estimated fair market value b.…
A: Book Value of an asset is the measure of the historical cost of an asset decreased by the total…
Q: An estimate of how an asset will be used up over its useful life is known as what? a.…
A: Introduction: Depreciation: Decreasing value of fixed assets over its useful life period called as…
Q: Which of the following depreciation methods can NOT depreciate an asset below its salvage value?…
A: Solution: As per GAAP, asset can not be depreciated below its salvage value.
Q: The depreciation increases the book value of equipment shown in the balance of its accumulated…
A: In accounting terms, depreciation is defined as the reduction of recorded value of a fixed asset in…
Q: The depreciation method in which the depreciable cost of an asset is apportioned equally over its…
A: a) in straight line method of depreciation Depreciation will be apportioned equally over its life…
Q: A plant asset's book value equals its estimated salvage value: A. On the date of the asset's…
A: Depreciation on a depreciable asset is computed after considering its salvage value so that at the…
Q: A method that ignores residual value in calculating periodic depreciation expenses in the earlier…
A: The value of an asset reduces over the life or as per the usage and the reduced value is known as…
Q: The following would affect the net income on the last year of the useful life of a long-lived asset…
A: Long lived assets are the fixed assets of the business, which are held by the business for the…
Q: Salvage value is: O Also called residual value O Also called scrap value O An estimate of the…
A: Solution: salvage value is the value of an asset remaining after it has been fully depreciated. It…
Q: When computing depreciation expence of PPE, both straight-line depreciation method and the…
A: Option A is incorrect because under straight line method, depreciation will be the same during the…
Q: It charges the same amount of expense to each period of the asset's useful life. This referes to…
A: Solution- Straight line depreciation is a common method of depreciation where the value of a fixed…
Q: the best technique to use in valuing a tangible loss is: A) A replacement cost B) Market Values C)…
A: Tangible loss means the direct loss of money or property such as lost wages etc.
Q: The estimated economic life of an asset is also known as ________. A. residual value. B.…
A: Estimated life refers to the estimated economic life or useful life which means the assets will be…
Q: What is proper time or time period over which to match the cost of an intangible asset with revenues…
A: An intangible asset is an asset which cannot be identified physically, but its value to the…
Q: Which of the following statements is true regarding the amortization of intangible assets? a.…
A:
Q: The allocation of the cost of a tangible asset to expense in the periods in which the asset is used…
A: Tangible assets are physical assets of a company such as land, building, machine which is used to…
Q: Which of the statements is incorrect concerning the depreciation methods? a) Under the output…
A: The questions are multiple choice questions Required Choose the Correct Option
Q: Required: State the effect (higher, lower, no effect) of accelerated depreciation relative to…
A: Assets: Assets are the resources of an organization used for the purpose of business operations.…
Q: The process of transferring the cost of an asset to an expense account over time is called A)…
A: 1. The correct option is option “D” D. Depreciation Depreciation: Depreciation refers to the…
Q: Which of the statements is incorrect concerning the depreciation methods? * a. Under the output…
A: Depreciation is a reduction in the value of assets due to usage or passage of time. The decreased…
Q: The difference between the purchase cost of an asset and its value at the end of the life is known…
A: Introduction: Depreciation: Decreasing value of fixed assets over its useful life period called as…
Q: In which method of depreciation, equal amount of depreciation is charged on the asset over its…
A: Depreciation is a non-cash expense which is charged to show a reduction in the worth of an asset due…
Q: Which of the following methods is used to amortize intangible assets over their useful lives? a. a…
A: Intangible assets have no physical substance but have a useful life and value. so intangible assets…
Q: Which of the following is true? a.If using the units-of-output method, it is possible to depreciate…
A: Depreciation is an expense which is charged on fixed asset over the useful life of an asset, there…
Q: Which depreciation method ignores residual value when computing the depreciable base of an asset?…
A: Option B is correct. Double declining balance method Double declining method ignores residual value…
Q: A method of depreciation whereby the amount to recover is spread uniformly over the estimated life…
A: Depreciation refers to the reduction in the value of asset due to its normal use and tear and wear.…
Which method of deprecaution is used when the cost of an asset is written off in equal amounts over its expected economic life?
A fixed instalment
B accelerated
C sum of the digits
D diminishing balance
Step by step
Solved in 2 steps
- Which of the following depreciation methods applies a uniform depreciation rate each period to an asset's carrying amount? a.Straight-lineb.Declining-balancec.Sum-of-the-years'-digitsd.Units-of-productionWhich of the following statements is true when the straight-line method is used to compute amortization? Multiple Chaice Expense recognizes declines as the asset wears out Accumulated amortization is a constant amount during the asset's estimated useful life. Amortization expense per period is the amortizable cost divided by the number of periods in the asset's useful life. The carrying value of an asset is a constant amount during the asset's useful life. None of the other alternatives are correctResidual value is O a. Present value. O b. Value in use. O c. The net cash amount that is received from the ultimate sale of the asset, at the end of its life. O d. The gross cash amount that is received from the ultimate sale of the asset, at the end of its life.
- Which of the following best describes depreciation?A It is a means of spreading the payment for the asset over its total estimated lifeB It represents the decline in the market value of the assetC It is a means of spreading the cost of an asset over its estimated useful lifeD It is a way of estimating the cash needed to replace the asset in the futureWhich depreciation method ignores residual value when computing the depreciable base of an asset? a. sum-of-the-year's-digits b. double-declining-balance c. composite depreciation d. group depreciationWhich of the following statements if not true? a. Depreciation is the process of allocating the purchase price of an asset minues its residual value to expense, for each period benefited by the asset. b. The cost of an asset includes all acquisition costs necessary to obtain the benefits to be derived from the asset. c. The service life of an asset is the measure of the number of years of service expected from the asset before its disposal. d. The residual value of an asset is the difference between the expected book value of the asset at the end of its service and the cost of disposal.
- Which depreciation method calculates annual depreciation expense based on the book value of an asset? a. double-declining balanceb. sum-of-the-years'-digitsc. inventory systemsd. group depreciationwhich method of depreciation is used when the cost of an asset is written off in equal amounts over it's expected lifeWhich of the following amortization methods is most likely to evenly distribute the cost ofan intangible asset over its useful life?A. Straight-line methodB. Units-of-production methodC. Double-declining balance method
- Statement 1: In impairment loss, the discount rate being used is the current pretax rate that reflects the current assessment of the time value of money and the risks specific to the asset. It shall not reflect risk for which the future cash flow estimates have already been adjusted.Statement 2: In computing for impairment of intangible asset with indefinite life, future cash flows are divided by the risk-adjusted discount rate to get the present value. Statements 1 and 2 are true. Statement 1 is true while Statement 2 is false. Statement 1 is false while Statement 2 is true. Statements 1 and 2 are false.A method of depreciation whereby the amount to recover is spread uniformly over the estimated life of the asset in terms of the periods or units of output. Straight line method Sinking fund method Declining balance method Sum of the Years Digit methodWhich depreciation method would result in the same depreciation expense amount regardless of the partial period cor Select one: a. Sum-of-the-years'-digits b. Declining-balance c. Units-of-production d. Straight-line