Which of the following payback methods assumes that the asset acquired may not last its estimated life. A. Traditional payback B. Present value payback C. Bail-out payback D. Payback reciprocal
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Which of the following payback methods assumes that the asset acquired may not last its estimated life.
A. Traditional payback
B. Present value payback
C. Bail-out payback
D. Payback reciprocal
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- Which of the following payback methods considers the salvage value in its basic computations? a. Traditional payback b. Bailout payback c. Present value payback d. Discounted paybackThe book value of an asset is equal to the: a. asset's market value less its historical cost b. book value relied on by secondary markets c. replacement cost of the asset d. asset's cost less accumulated depreciationThe current asset financing policy that calls for matching the maturities of assets with the maturities of liabilities is known as the a. permanent current ratio approach b. temporary net working capital approach C. conservative approach d. self-liquidating approach e. aggressive approach
- 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 valueAssuming interest costs related to an asset qualify for interest capitalization, which of the following best describes the determination of how much interest should be capitalized? The amount capitalized should be the average between the actual and avoidable interest amounts. The amount capitalized should be the higher of the actual or avoidable interest amounts. The amount capitalized should always be the actual interest amount. The amount capitalized should be the lower of the actual or avoidable interest amounts. The amount capitalized should always be the avoidable interest amount.According to historical cost principle, the assets and liabilities should be reported (tick whichever apply)? a.At their market value b.At their cost of acquisition c.At their replacement value d.All of the above
- In order to calculate the cost of a long-term asset that is financed with long-term debt, present values concepts would be used. Group of answer choices A)True B)Falsei. Using an example, briefly explain to Mr. Dates what is meant by mutually exclusiveinvestments.ii. Compute each investment’s payback period.iii. Compute each investment’s Net Present Value (NPV).Present value of decommissioning and restoration costs are capitalized as PPE and with a corresponding credit to what account?
- How is the amortized cost for a financial asset calculated? O Amount of original recognition of the asset plus interest earned till date less repayments received till date O Amount of original recognition of the asset plus interest earned till date Amount of original recognition of the asset Manju Fair value of the asset he ProblemsWhat is the difference between the cost of a fixed asset and its accumulated depreciation called? Group of answer choices book value current value fixed value equity valueThe difference between book value of the asset with the proceeds receive from its sale, with result in?
