“Cost written off as depreciation on equipment already purchased is always irrelevant.” Do you agree? Why?

Q: Explain why activity based method is more appropriate to calculate depreciation than straight line…

A: Depreciation is charged to allocate the cost of the asset over the useful life of the asset. It…

Q: The depreciation method used shall reflect the pattern in which the asset’s future economic benefits…

A: Depreciation is the method of accounting which assign the cost of the physical asset or the tangible…

Q: What is the systematic periodic transfer of the cost of a fixed asset to an expense account during…

A: It is a measure of the wearing out, consumption or other loss of value of depreciable asset arising…

Q: Allowable depreciation reduces the basis of an asset whether the depreciation is deducted or not.

A: Allowable depreciation is the depreciation of the asset which is must allowed to deduct from the tax…

Q: Which of the following is not included as part of the cost of an item of property, plant and…

A: Property, Plant and Equipment refers to All fixed Asset having long useful life more than One year.…

Q: written down value method is more appropriate than the straight-line method

A: Under written down value method, accelerated depreciation is charged in initial years of useful life…

Q: What is advantages and disadvantages of centralization and decentralization? -Explain Effects of…

A:

Q: Which of the following is not a factor that limits the service life of an asset? a. Operational use…

A: Service life can be limited due to physical causes and functional causes such as deterioration,…

Q: Explain how asset impairment differs from depreciation, depletion, and amortization. How do…

A: Depreciation,Depletion and amortization records the usage of a fixed asset over a period of time and…

Q: The factor that is not relevant in computing depreciation is

A: Depreciation is an accounting method used to allocate the cost of a tangible or physical asset over…

Q: The cost of an item, an estimate of its salvage value, and an expected usable life are all factors…

A: The Answer

Q: TRUE OR FALSE? Once decided by management as an asset held for sale, management can never change…

A: An entity should classify an asset held for sale category when the carrying amount of an asset will…

Q: Instead of valuing assets, depreciation is a cost allocation procedure. This statement should be…

A: This question tells about depreciation is a cost allocation procedure:

Q: Depreciation is a process of cost allocation, not valuation. Explain this statement.

A: Depreciation: Depreciation expense is a non-cash expense, which is recorded on the income statement…

Q: The following are the causes of functional depreciation except: a. obsolescence of the machine b.…

A: Depreciation means decline in the estimation of benefit inside its valuable life because of mileage…

Q: Why FASB treat the spending on the search and development as expense why it can’t be treated as long…

A: Accounting Principles: Accounting principles are the regulations and criteria that businesses must…

Q: What statement is loss of sold equipment on?

A: Loss on sale of Equipment is a non operating loss. Such losses are shown in Income Statement after…

Q: Which of the following statements relating to intangible assets is true? A All intangible assets…

A: Intangible assets: These are the long-term assets which are not physical in nature, but possess…

Q: True or false _________ Costs incurred that are directly attributable to the acquisition of a PPE…

A: Answer

Q: Salvage value is always deducted from the total capitalizable cost to get the depreciable cost. What…

A: Depreciation means the loss in value of assets because of usage of assets , passage of time or…

Q: Of the following costs related to the development of mi one is not a part of depletion cost?

A: Deplation Cost One of two accounting systems for allocating the costs of extracting natural…

Q: It results not from a deterioration in the asset's ability to serve its intended purpose, but from a…

A: Depreciation is less  in the value of asset. depreciation is a natural phenomenon in which the value…

Q: 34. Which of the following is not one of the basic questions that must be answered before the amount…

A: The correct option is (B). The products or services being rendered by the asset has no relations…

Q: Do the fixed assets lose their value even though they continue to function and contribute to the…

A: Meaning of Fixed Assets Fixed assets are those assets which are used in the business with the…

Q: (d) On what basis should management select from these two methods to depreciate the machine? Justify…

A: The management should opt for reducing balance method of depreciation for the above scenario: This…

Q: Depreciation, depletion, and amortization deductions are not available for some types of property;…

A: Some assets' costs are not recovered because they do not qualify as trade assets, which is the…

Q: The carrying amount of an item of property, plant and equipment that is subsequently accounted for…

A: The answer is option (3.) [ i.e, the historical cost less any accumulated depreciation and any…

Q: Which of the following is not a factor in computing depreciation for a period? present value…

A: SOLUTION- Present value is not a factor for calculating depreciation.

Q: How would you define depreciation and explain its purpose to someone who is not taking this course?…

A: Depreciation expense is the reduction in the value of assets due to normal wear and tear, the…

Q: Which of the following expenditures cannot be included in R&D costs? a. indirect costs b.…

A: R & D: R & D means Research and Development which indicates as a process of obtaining new…

Q: Explain why depreciation on an existing asset is always irrelevant.

A: Fixed assets are those assets that are being held by the business for a longer period of time. For…

Q: The cost of an asset that is subject to depreciation is called?

A: The cost of an assets that is subject to depreciation is called depreciable cost and not the actual…

Q: Why should the total costs of the machine be viewed as an asset and allocated against the future…

A:

Q: Why is the cost of certain kinds of property not recoverable at all by way of depreciation,…

A:

Q: What is meant by depreciation for the cost approach?

A: The cost of the property should not be more than the cost of acquiring and building the property.…

Q: Which of the following costs are NOT typically capitalized when acquiring a new piece of equipment?…

A: This question deals with the concept of IAS 16 "Property plant and equipment", IAS 23 "Borrowing…

Q: is used to spread the cost of an asset across its useful life rather than recognizing it all at…

A: Let's understand the basics, Asset is an item of property owned by a person or company, regarded as…

Q: statement regarding depreciation

A: All the statements given regarding depreciation is correct.

Q: One factor that is not considered in determining the useful life of an intangible asset is* Residual…

A: Hi Student Since there are multiple questions we will answer only first question. If you want…

Q: Normally, depreciation should not be recognized on plant assets during their construction period.…

A: The depreciation expense is charged on fixed assets  as reduction in value of fixed assets with the…

Q: Which of the following must be true in order to use the units-of-production method of depreciation?…

A: All fixed assets loses their value over the period of time. Depreciation is recorded in books of…

Q: Why would someone choose a slower alternative depreciation method?

A: ADS stand for Alternative Depreciation System. In this system, amount of depreciation is set as same…

Q: Which of the following expenditures would be included in the cost of a fixed asset? O a. Sales taxes…

A: COST OF FIXED ASSETS: when we talk about fixed assets and the values at which they should be…