(40) Obsolescence may cause an asset's useful life to be longer than the asset's physical life - True or False?
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(40) Obsolescence may cause an asset's useful life to be longer than the asset's physical life - True or False?
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- Which of the following is not a factor that limits the service life of an asset? a. Operational use b. Adequacy c. Deterioration as a function of time d. ObsolescenceQ10 Which of the following statement is NOT correct? Select one: a. When the carrying amount of an asset is less than the recoverable amount, then an asset should have its previous impairments reversed to the value of the recoverable amount provided there is accumulated amortization to cover the difference. b. The difference between the carrying amount of an asset and the recoverable is the impairment loss if the carrying amount is greater. c. When the carrying amount of an asset is greater than the recoverable amount, then an asset should be impaired to the value of the recoverable amount d. The difference between the carrying amount of an asset and the recoverable is the impairment loss if the carrying amount is less.A) What is residual value? Support your answer with an example ( word count 100) B) In practise, would you expect the depreciation expense for a non-current asset to be overestimated or underestimated? Explain why this is the case.
- True or False: increasing the salvage value increases depreciation expense.FalseTrue or False: decreasing the useful life increases depreciation expense.True Why are the answers false and true? Please explain!17 The accounting book value of an asset represents the historical cost of the asset rather than its current market value or replacement cost. Select one: True FalseIn practice, would you expect the depreciation expense for a non-current asset to be overestimated or underestimated? Explain why this is the case.
- LO1 Depreciable cost is the difference between the original cost of the asset and its accumulated depreciation.Which of the following is true regarding special issues in accounting for long-term assets? A. An assets useful life can never be changed. B. An assets salvage value can never be changed. C. Depreciation expense calculations may need to be updated using new and more accurate estimates. D. Asset values are never reduced in value due to physical deterioration.2- Why is the fixed asset riskier than current asset?
- Which of the following is true regarding special issues in accounting for long-term assets?A. An asset’s useful life can never be changed.B. An asset’s salvage value can never be changed.C. Depreciation expense calculations may need to be updated using new and more accurate estimates.D. Asset values are never reduced in value due to physical deterioration.Depreciation is a process of asset valuation where an asset's book value (cost less accumulated depreciation) often approximates it fair value. Do you agree or disagree? Explain why or why not.Q1 Which of the following statement (s) is (are) true? (i) When no future economic benefits are no longer expected to flow from an intangible asset, such asset should be derecognized the financial statements of an organization. (ii) When an intangible asset is derecognized, the carrying amount should be written off as a loss in the profit or loss statement at the date of retirement of the asset. (iii) When an intangible asset is sold, the difference between the carrying amount and consideration received is recognized in the profit or loss statement at the date of the sale. (iv) Consideration to be received in the event of sale of an intangible asset should only be cash Select one: a. (ii) and (iv) only b. (i) and (ii) only c. (i) and (iv) only d. (i), (ii) and (iii) only