Opening exercise

What is the 'carrying amount of a depreciating non-current asset? O A. The cost (or fair value) of the asset less the accumulated depreciation on that asset O B. The current market value of the asset C. The cost (or fair value) of the asset less the current year's depreciation O D. The cost (or fair value) of the asset

The amortization process is like what other process?A. depreciationB. valuationC. recognizing revenueD. capitalization

Which of the following statements about capitalizing costs is correct?A. Capitalizing costs refers to the process of converting assets to expenses.B. Only the purchase price of the asset is capitalized.C. Capitalizing a cost means to record it as an asset.D. Capitalizing costs results in an immediate decrease in net income.

1. How do we decide whether to capitalize (record as an asset) or expense a particular cost? 2. Provide one example of each to capitalize (record as an asset) or expense a particular cost.

4. The most appropriate definition of depreciation is: A. A means of determining the decrease in the market value of an asset over time B. A means of allocating the cost of an asset over a number of accounting periods C. A means of setting funds aside for the replacement of the asset D. A means of estimating the current value of the asset

VIOving nanges to this answer. nsanh Question 4 A gain on the sale of a long-term asset is recorded when cash proceeds are: a. less than the book value of the assets sold. b. less than the historical cost of the asset sold. C. less than the accumulated depreciation. d. greater than the book value of the asset sold.

What is the primary purpose of depreciation?

What is the purpose of charging depreciation in financial statements? A To allocate the cost of a non-current asset over the accounting periods expected to benefit from its use B To ensure that funds are available for the eventual replacement of the asset C To reduce the cost of the asset in the statement of financial position to its estimated market value D To account for the ‘wearing-out’ of the asset over its life

(Multiple Choice Question) Amortizable Cost refers to   1. An asset's Net Book Value minus its Accumulated Amortization   2. The added cost of a capital asset after undergoing a capital improvement   3. The portion of the cost of the asset that will amortize over its useful life   4. The entire cost of a capital asset

which of the following statements in relation to the cost of the asset is true? A. all of the statements are true B. The cost includes cash equivalent paid C. The cost includes the fair value of any non monetary consideration given to acquire an asset D. The cost includes nonrefundable purchase taxes

The 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 depreciation

Provide right Ans

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 future

What are the criteria for capitalization of fixed assets? What items are included in the cost of a fixed asset? Should interest be included in the cost of a fixed asset? Why or why not?

(Multiple Choice Question) An impairment loss is recorded when capital asset's   1. net book value is higher than the amount it could likely be sold for   2. market value is higher than its accumulated amortization   3. market value is higher than its net book value   4. net book value is higher than its accumulated amortization

Which of the following is not a factor in selecting a depreciation method? a. salvage valueb. repair and maintenance costsc. Inflationd. the risk associated with the cash flows from the asset

Why is depreciation added to Net CAPEX? A To adjust CAPEX for taxable income B To isolate changes due to buying or selling of CAPEX с To reflect the economic value of the fixed assets

Pre-Lecture Question 01 Which of the following is a characteristic of intangible assets?   1 They are all subject to amortization. 2 They are long-term in nature. 3 They are financial instruments. 4 They have physical existence.

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

Need answers ASAP... It approximates the present value of what will be received through ownership of the property, including the time value of money. a. Fair value b. Salvage value c. Market value d. Book value

QUESTION 17 Match the term on the left to the appropriate description on the right. v Historical cost A. The amount of a PP&E asset's acquisition cost that will be depreciated over the asset's useful life v Depreciable cost B. An asset whose value derives from rights and privileges rather than physical existence v Salvage value v Accumulated depreciation C. The capitalized acquisition cost of an asset v Intangible asset v Amortization D. The process of allocating an intangible asset's acquisition cost to expense over its useful life E. The book value of a fully-depreciated PP&E asset F. The total amount of depreciation expense that has been recorded to-date for a PP&E asset

What do you mean when you say the depreciable life of an asset is defined?