An asset is depreciated over whichever is longer, the asset's service life or physical life. True or False True False
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- LO1 Depreciable cost is the difference between the original cost of the asset and its accumulated depreciation.97. The portion of the acquisition cost of an asset yet to be allocated is known as A. Written down value B. Accumulated value C. O Realizable value D. O Salvage valueQUESTION 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
- 6 The difference between cost of the asset and residual value is known as _______________. a. Depletion b. Depreciable cost c. Salvage value d. Total cost of the asset Clear my choiceThe ‘carrying value’ of a depreciable asset is the difference between ____? a. Depreciation and accumulated depreciation b. Cost and accumulated depreciation c. Cost and depreciation d. None of the above43 If the “fair value less cost to sell” of a noncurrent asset held for sale is lower than its carrying value, the difference is treated as a. gain b. impairment loss c. depreciation expense d. prior period adjustment
- Q10 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.Question 7 The asset's book value is determined by deducting the residual value from its original cost. True FalseWhich statement is INCORRECT about subsequent measurement of intangible assets? Q7 Select one: a. When using the cost model an entity should estimate the estimated useful life as well as the estimated residual value if the asset is determined to have an indefinite useful life b. When using the cost model an entity should estimate the estimated useful life as well as the estimated residual value if the asset is determined to have a definite useful life. c. The same model chosen by an entity should be used for all intangible assets in the same class. d. Intangible assets may be measured using either the cost model or the revalued cost model.
- 36 Depreciation is the systematic allocation of the cost price of an item of property, plant and equipment over the useful life of that asset. A. True B. FalseThe depreciable amount is also called the _________________. Select one alternative: carrying amount depreciable asset historical amount depreciable baseThe sale of a depreciable asset resulting in a loss indicates that the proceeds from the sale were а. less than book value O b. greater than book value С. less than current fair value O d. greater than cost
