1. It is a depreciation method based on the assumption that the value of a property is directl proportional to its age. a. Straight Line Method b. Sinking Fund Method c. Declining Balance Method d. Service Output Method
Q: 4. The most appropriate definition of depreciation is: A. A means of determining the decrease in the…
A: Introduction:- The following methods used to calculate depreciation as follows under:- Straight…
Q: 1. IAS 36 applies to which of the following assets? (a) Inventories. (b) Financial assets. (c)…
A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: Which of the following doesn't represent depreciation Select one: O a. It is the process of…
A: Depreciation is an accounting method that allows a company to write off an asset's value over a…
Q: Which of the following depreciation methods applies a uniform depreciation rate each period to an…
A: The depreciation expense is the reduction in the value of assets due to the use of that asset or…
Q: What type of depreciation expense pattern is used under eachof the following methods and when is its…
A: or
Q: Which of the following concepts is not related to depreciation? Select one: a. Historical cost…
A:
Q: 7. Which of the following statements is true regarding capitalization of interest? A) The minimum…
A: Property, Plant, and Equipment: Property, Plant, and Equipment refers to the fixed assets, having a…
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: Statement 1: When an item of asset is transferred to and from the classification investment…
A: The correct answer for the above mentioned question is given in the following steps for your…
Q: depreciation computed by the straight-line
A: Depreciation as per straight Line method = $ 9575
Q: ‘carrying value’ of a depreciable asset is the difference between
A: Carrying value of an asset gives value of Company's asset as on given date after provision of wear…
Q: The cost of an asset that is subject to depreciation os called?
A: Assets: Assets are those resources that are owned by the business organization which has an economic…
Q: The value of "Property, Plant, & Equipment, net" reported on the balance sheet represents: A) The…
A: Fixed assets are an unavoidable component of every business organization. These assets are useful in…
Q: Net book value is Select one: a. Amount of which an asset is recognized in the balance sheet after…
A: Book value of the asset is the value at which the asset is recorded in the financial statement. All…
Q: Of the following, what information is required to calculate depreciation allowances under…
A: Depreciation is the process of decrease or diminishes the value of an asset. It is an accounting…
Q: What types of assets are depreciated? a. intangible assets. Ob. natural resources. Oc. property,…
A: SOLUTION- DEPRECIATION IS AN ACCOUNTING METHODS OF ALLOCATING THE COST OF TANGIBLE ASSETS OVER ITS…
Q: Determine the following; A.)Depreciation rate, in %. B.)Value of A. C.)Value of B.
A: We use different methods of depreciation like the straight line method, double declining balance…
Q: Recording depreciation each period is necessary in accordance with the Select one: a. going concern…
A: Every fixed asset loses their value over the period of time. Depreciation is charged to record the…
Q: What is the amount of the annual depreciation computed by the straight-line method?
A: Depreciation: It is the reduction in the value of an asset due to normal wear and tear,…
Q: What is meant by straight line method if charging depreciation?
A: Depreciation: Depreciation refers to the reduction in the monetary value of a fixed asset due to its…
Q: fhich of the tfollowing statement best describes depreciation? a. It is a means of spreading the…
A: Fixed assets: These are the assets which were used in the business for more than one year. These…
Q: Depreciation records include all of the following information about fixed assets EXCEPT the a.…
A:
Q: Depreciation is a process of: a. Asset devaluation b. Cost accumulation c. Cost allocation d.…
A: Depreciation is the process of cost allocation of an asset. It is made due to the wear and tear and…
Q: Define the following: (a) Depreciation (b) Book value
A: Asset refers to the resources kept by the businesses to be utilized in the operations. Assets are…
Q: "Depreciation is provided to not only cover capital expenditure during the span of Assets life, but…
A: Since there are multiple parts in this question only the first part will be answered. The capital…
Q: Match the term on the left to the appropriate description on the right. v Historical cost A. The…
A: 1. In this question we match the write explanation with proper headings.This is match the columns.…
Q: We normally record a long-term asset at the a. Cost of the asset only.b. Cost of the asset plus all…
A: We normally record a long-term asset at the cost of the asset plus all costs necessary to get the…
Q: Statement 1: When an item of asset is transferred to and from the classification investment…
A: Only two of the Statements are true.
Q: The factors used to compute depreciation expense are an asset's: O Cost, residual value, and service…
A: Depreciation expense is the amount which shows the decrease in the value of asset over its useful…
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: The relevant factor(s) in computing depreciation include: A. Cost. B. Residual value. C. Useful…
A: Depreciation is a use of an asset. It is the value of an asset which has been utilized in the…
Q: In all cases, net property, plant and equipment (PP&E) should be calculated as the gross PP&E less…
A: Solution: Gross PP &E = Cost of purchase of PPE Accumulated depreciation = Depreciation…
Q: How is the straight-line depreciation calculated?
A: Definition: Straight-line depreciation method: The depreciation method which assumes that the…
Q: Distinguish between declining balance method of depreciation and double declining balance method of…
A: Depreciation is the reduction in the value of asset over its useful life due to reasons such as…
Q: Prepare depreciation schedules for the following methods a) Double Declining Balance Method b)…
A: Given in the question: Date of Purchase 01 January, 2014 Cost of Equipment 80000…
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: The balance in the Accumulated Depreciation account represents a. The amount charged to expense in…
A: In This Question has Covered the concept used Accumulated Depreciation.
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.…
Q: Which of the following statements are true about the revaluation model per IAS 16 Property, Plant…
A: IAS 16 Property, Plant, and Equipment specify the treatment of the tangible fixed assets of the…
Q: to the cost of the asset. (a) Is it perm record additional depreciation on the
A: The value of the fixed assets decreases over the period of time due to wear and tear so as to record…
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- 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.LO1 The purpose of depreciation is to (a) spread the cost of an asset over its useful life. (b) show the current market value of an asset. (c) set up a reserve fund to purchase a new asset. (d) expense the asset in the year it was purchased.MCQ: Choose only the correct answer Which of the following statements is false? (a) Financial Instruments are intangible assets (b) Goodwill is not amortizable (c) Goodwill can be identified only in business combination situation (d) Straightline method is generally used to calculate amortazation Which of the following will not be considered while calculating the depletion base? (a) Acquisition costs (b) Tangible development costs (c) Restoration Costs (d) Intangible development costs Which of the following will not be included into the the original cost of a land? (a) Legal fees (b) Brokers' commision (c) Property taxes (D) Accrued property taxes of previous owner The journal entry to record the transportation cost paid by the purchaser under periodic inventory system is- (a) Inventory Dr. and Cash Cr. (b) Transportation-in Dr. & Cash Cr. (c) Delivery Expense Dr. & Cash Cr. (d) Transportation-Out Dr. & Cash Cr. In case of change in estimate of useful life for a tangible…
- Why is depreciation expense recognized? Select one: a. To provide a better estimate of the market value of the depreciated assets. b. So that the balance sheet value of plant assets will more accurately reflect the replacement cost of the assets. c. To ensure that cash will be available at the end of the assets' useful life in order to replace it. d. To match the cost of the asset against the revenue using a reasonable allocation. method. Save AnswersNextWhich of the following statements about depreciation is not true? A. Depreciation does not mirror the actual loss of value over time. B. Depreciation is the allocation of the asset’s cost to expense over the expected years of use. C. If the fair value of the asset increases, depreciation is reversed to reflect the change in value. D. U.S. GAAP requires depreciation methods to be systematic and rational.1. IAS 36 applies to which of the following assets? (a) Inventories. (b) Financial assets. (c) Assets held for sale. (d) Property, plant, and equipment. 2. Value-in-use is (a) The market value. (b) The discounted present value of future cash flows arising from use of the asset and from its disposal. (c) The higher of an asset’s fair value less cost to sell and its market value. (d) The amount at which the asset is recognized in the balance sheet. 3. If the fair value less costs to sell cannot be determined (a) The asset is not impaired. (b) The recoverable amount is the value-in-use. (c) The net realizable value is used. (d) The carrying value of the asset remains the same. 4. If assets are to be disposed of (a) The recoverable amount is the fair value less costs to sell. (b) The recoverable amount is the value-in-use. (c) The asset is not impaired. (d) The recoverable amount is the carrying value. 5. Estimates of future cash flows normally would cover projections over a maximum…
- Which of the following statements regarding the acquisition of PP&E is false? A. For a self constructed asset, capitalized interest can exceed actual interest cost. B. If a long-lived asset is acquired and will be paid over a number of years, the time value of money should be considered. C. The general rule of PP&E valuation is to value the asset received at the fair market value of what was given up. D. The acquisition cost of land should include all things that prepared it for it's use including excavation. In interest capitalization related to self constructed assets, all of the following must occur before the capitalization window begins except: A. Expenditures for the assets have been incurred B. Depreciation of the asset being built has been recognized C. Activities that are necessary to get the asset ready for its intended use are in progress D.Interest has to be incurredWhat 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 lifeWhich of the following statements is false? A.For a self constructed asset, capitalized interest should never exceed actual interest cost. B.A loss on exchange will always be recognized regardless of commercial substance. C.The cost to build an addition to an existing building should be expensed immediately. D.If a long-lived asset is acquired and will be paid over a number of years, the time value of money should be considered.
- 1. When reclassification is made from owner occupied property to investment property that will be carried at fair value, any excess of the fair value over the carrying amount at the date of transfer is a. ignored. b. recognized as a gain in profit or loss, c. credited to asset revaluation surplus. d. recorded as a credit to a liability account2. Which of the following are valid statements regarding measurement of investment property? I. The best evidence of fair value is current price in an active market for similar property in the same location and condition.II. When items of investment property are measured at fair values, any movement in fair value is credited to other comprehensive income under the heading revaluation surplus.III. An entity shall continue to measure an investment property at fair value until its disposal if it has previously valued the property at fair value.IV. Transaction costs directly attributable to acquisition of investment property are capitalized as…1. When an item of asset is transferred to and from the classification investment property, carried using the cost model, the measurement basis at the date of transfer is the a. original cost. b. fair value. c. carrying amount. d. recoverable amount.2. What could be a valid reason for transfers from investment property to property, plant and equipment? a. When there is a change in use b. based on the accountant's discretion c. When the entity adopts the fair value model d. when there is change in asset's life3. An entity has an investment property that is held for rental income. The entity uses the fair value model for reporting the investment property. Which of the following statement is true? a. changes in fair value are reported in profit or loss in the current period b. changes in fair value are reported as an extraordinary gain c. changes in fair value are reported in other comprehensive income for the period d. changes in fair value are…Which of the following is not a condition that must be satisfied before interest capitalization can begin on a qualifying asset? A) Activities that are necessary to get the asset ready for its intended use are in progress. B) The interest rate is equal to or greater than the company's cost of capital. C) Interest cost is being incurred. D) Expenditures for the assets have been made.