Under normal circumstances, will the carrying value of a long-term asset be equal to its market value?

Q: How do you calculate Fixed Asset Turnover? What is the Free Cash Flow Ratio? What is the difference…

A: The answers for the questions on accounting ratios are discussed hereunder : Fixed Assets turn over…

Q: What determines the value of an economic asset (as opposed to an asset that has value for reason of…

A: Asset value is an important component of a company's total value and it can be…

Q: The book value of an asset is equal to the

A: This question tells about the book value of an asset is equal.

Q: If the sale price executes at the price you specified, what would be the total loss, excluding…

A: Sales price when executed at the price specified will be equal to the breakeven price.  Break even…

Q: Is long term investment is classified as non-current assets?

A: Generally, the liquidity of the assets plays a significant role in determining whether they are…

Q: Explain what effect will an upward asset revaluation have on subsequent periods’ profits

A: The revaluation of assets means the change in the value of assets over a period of time this made…

Q: In a theoretical sense, the financial value of any asset is the present value of:

A: The Answer

Q: What basic principle of finance can be applied to thevaluation of any investment asset?

A: Investor invests in any investment to earn the returns from it. As per the risk and return analysis,…

Q: Whats is the effect of increasing the asset turnover (ATO) on enterprise price-to-book value,…

A: Asset turnover ratio is The asset turnover ratio measures the value of a company's sales or…

Q: The primary measurement basis is a.) The current market price if the asset currently held was sold…

A: there are different measurement devices that are used- historical cost current cost net realizable…

Q: Must two assets with the same fundamental characteristics (e.g. same payment stream, same credit…

A: Assets are valued on the basis of profit,cash flow and associated risk.But there value may not be…

Q: Which of the following has the right to sell an asset at a predetermined price?

A: A put option is an instrument which provides its holder an option to sell an underlying asset on a…

Q: According to the historical cost principle, assets are measured at the exchange price at the time…

A: Introduction: As per the historical cost principle is one of basic accounting principle, is a…

Q: The book value of an asset is equal to the: a. asset's market value less its historical cost b.…

A: Book value is the net value of the assets that appears in balance sheet. it is calculated by…

Q: True or False: The loss in the market value of tangible fixed assets is referred to as depreciation.

A: Introduction: Depreciation is a source of pre-expense. It is applied to fixed assets over the…

Q: what are some pros and cons of holding high level of current assets in relation to sale?

A:

Q: Profit on sale of fixed assets arises when: Sale price is more than the original purchase value of…

A: Profit on the sale of fixed assets arises when the book value of the asset is less than the selling…

Q: True or False: Depreciation is the decline in the market value of tangible fixed assets.

A: Fixed assets are assets having a life of more than one year. Fixed assets like buildings, equipment,…

Q: In general terms, what is the Capital AssetPricing Model (CAPM)? What assumptions weremade when it…

A: CAPM: The capital asset pricing model (CAPM) is a method utilized to determine a hypothetically…

Q: Which of the following payback methods assumes that the asset acquired may not last its estimated…

A: Capital Budgeting technique: It is the process  by which  value of a potential investment project is…

Q: What is the correct total asset turnover ratio

A: Introduction:- Ratio analysis is used to identify financial performance of the company. Financial…

Q: How do you evaluate an asset whose value is dependent on future cash flow expectations

A: The Answer :

Q: In a theoretical sense, the financial value of any asset is the present value of: Select one: A. Its…

A: Net present value represents the difference in the present value of cash inflow and cash outflow.

Q: The fair value is the value of an asset as it appears on the balance sheet. O True O False

A: The balance sheet is one of the financial statements of the business, which represents the financial…

Q: . What is the definition of a fixed asset and which expenditures can be added to the capitalized…

A: Disclaimer: “Since you have asked multiple question, we will solve the first question for you. If…

Q: The best evidence of fair value for an investment property is price in a binding sale agreement…

A: Fair value is the value of investment measured at market prices for assets and liabilities.

Q: What is the difference between a current asset and a fixed asset?

A: Financial Accounting:   It refers to the process of recording the financial transactions of the…

Q: the equation for book value is: book value = cost of an asset minus its accumulated depreciation.…

A: Asset: Asset is a resource owned by a company from which future economic benefits are expected to…

Q: When a fixed asset is sold for less than book value, which one of the following will decrease?

A: Ratio Analysis: This refers to the performance measurement of the business, in order to know the…

Q: Will the carrying value of a long-term asset be equivalent to its market value under typical…

A: Here is the Answer

Q: A "fairly-priced" asset lies A. on the security-market line. B. above the capital-market line. C.…

A: If a security lies above the SML it is undervalued and if it lies below the SML it is overvalued.…

Q: Why does the interest in the original investment or the capital cost is included as a cost in the…

A: The annual worth method is the method in which all the cash flows are equally distributed across the…

Q: On the balance sheet date, the book value (or carrying value) of an asset should always equal the…

A: answer are as follows

Q: The cost of an asset purchased purchased under a finance lease will be equal to the carrying amount…

A: Cost of an asset purchased under finance lease is recorded at the lower of fair value of the asset…

Q: Why is the fixed asset riskier than current asset?

A: In financial accounting, the company's financial statements assets are classified into two…

Q: . How does one determine the value of any assetwhose value is based on expected future cash flows?

A: If there is an order of anticipated upcoming cash flows, cash flow technique is one of the finest…

Q: How much is the fair market value of the equipment which B contributed?

A: Partnership is a form of business in which partners agree to contribute capital into partnership and…

Q: How is the fixed asset turnover ratio computed? Explainits meaning.

A: Ratio analysis is a method of measuring the financial position of the organization with different…

Q: cost of the new asset acquired

A: Cost of acquisition of new asset = Carrying amount of exchanged asset + Cash difference paid

Q: When an asset is acquired and a note payable is assumed, explain how acquisition cost of the asset…

A:

Q: What is the difference between the cost of a fixed asset and its accumulated depreciation called?…

A: Accumulated depreciation is the total of all the depreciation that has been charged to the asset…

Q: According to the historical cost principle, assets are always carried at their current market value.…

A: The accounting principles are required so as to record the accounting information in the accounting…

Capital Gain

Any capital asset when sold can give the seller a higher or lower price from its purchase price leading to a capital gain or capital loss. The time period of holding an asset is decided based on if it is a long term or short-term capital gain. On that basis, the rate of taxation is decided if it is 20%, 15% or according to the tax brackets. The rate of taxation differs in the case of equity or debt, whether long or short term. The capital gain can be adjusted from capital loss to arrive at a net capital gain. The amount of gains and the exemption has to be reported in the tax return filed in the financial year in which the asset was transferred. The tax return can be filed quarterly, monthly, semi-annually or annually.