Demonstrates the difference between depreciation costs as expenses and the cash flow generated by the purchase of a fixed asset?  Give an example?

Q: Realizable value

A: Which one of the following terms best describes the amount of cash or cash equivalents that could…

Q: for information on MACRS depreciation.) What is the required net investment, and what are the year 1…

A: Net Investment= Cost of equipment  + freight and installation cost= 900000+100000=1000000 The net…

Q: the amortization of intangible assets with finite useful lives is justified by the : a- economic…

A: a) Economic entity assumption states that a entity and the people managing it are different persons…

Q: Which of the following is not a factor in selecting a depreciation method? a. salvage value b.…

A: Depreciation is charged on cost of assets on annual basis for repair and maintenance costs and…

Q: Which of the following statements if not true? a. Depreciation is the process of allocating the…

A: Residual value is also considered as salvage value. it is an estimation of remaining value assets at…

Q: Which one of the following is not one of the factors in computing depreciation? Cost price…

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

Q: Required Determine the capitalized cost of the asset.

A: Step 1 Hello. Since your question has multiple parts, we will solve first question for you. If you…

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

A: Introduction: Depreciation is a source of pre-expense. It is applied to fixed assets over the…

Q: how can depreciation be a cash flow?

A: Depreciation is an accounting method of allocating the cost of a tangible or physical asset over its…

Q: What costs should be included when measuring the total cost to acquire a long-term asset?

A: Long-term assets: The assets which are used to generate revenue for the business operations for a…

Q: Profit on sale of fixed assets arises when: Sale price is more than the original purchase value of…

A: Profit on the sale of fixed assets arises when the book value of the asset is less than the selling…

Q: True or False: Depreciation is the decline in the market value of tangible fixed assets.

A: Fixed assets are assets having a life of more than one year. Fixed assets like buildings, equipment,…

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: Which of the following best describes depreciation? A.ccounts for the market value of a physical…

A: Depreciation is an expense which is shown and recorded in the expense side of the income statement.

Q: What is the DuPont method of analysis and how does it break down return on assets

A: Given : This question tells about the DuPont method of analysis and how does it break down return on…

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: EBITDA can be calculated using following formula depreciation = EBITDA + ЕBIT ammortisation EAT…

A: EBITDA means earning before interest , tax , depreciation and amortization.

Q: Why would companies choose one method of accounting for Depreciation over another method?  What are…

A: Most companies choose one method of accounting over another method on the basis of the accounting…

Q: hich of the following statement best describes depreciation? a. It is a means of spreading the…

A: Explanation:Depreciation isn't the result of fluctuations within the value of fixed assets since,…

Q: . What is the definition of a fixed asset and which expenditures can be added to the capitalized…

A: Disclaimer: “Since you have asked multiple question, we will solve the first question for you. If…

Q: As compared to capitalizing a cash expenditure, what is the initial effect on asset turnover of…

A: Asset Turnover = Sales / Average Total Assets Average Total Assets = (Beginning Total Assets +…

Q: What is the first impact on asset turnover of promptly expensing a cash outlay compared to…

A: The Answer :

Q: Some believe that accounting depreciation measures thedecline in the value of fixed assets. Do you…

A: Depreciation: Depreciation is a method of reducing the capitalized cost of long-lived operating…

Q: the equation for book value is: book value = cost of an asset minus its accumulated depreciation.…

A: Asset: Asset is a resource owned by a company from which future economic benefits are expected to…

Q: As compared to capitalizing a cash expenditure, what is the initial effect on asset turnover of…

A: Asset Turnover Ratio: The total asset turnover ratio evaluates the efficiency of the organization…

Q: Under what circumstances will you consider the reducing balance method as the most appropriate…

A:

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: Why aren't they fully expensed at the time they are purchased?

A: Assets : - Assets are classified into two types.  1. Fixed assets  2. Current assets Depending on…

Q: It is the initial cost of acquiring an asset, plus sales tax, transportation and normal costs of…

A: Cost of the asset is the cost which has been paid by the company in order to buy the asset and on…

Q: The general rule in the accounting treatment of research and development costs is    A. Capitalize…

A: This question deals with the IAS 38 "Intangible Asset". As per accounting standard, intangible asset…

Q: Illustrate the significance of depreciation and income taxes?

A: Depreciation is the charge against the usage, wear and tear or obsolescence of the asset in the…

Q: Valuing assets at the amount of cash or equivalents paid or the fair value of the consideration…

A: The elements of financial statements which contain the financial information about an organization…

Q: In determining the value in use, which of the following cash flow is excluded from the computation?…

A: As per provisions of IFRS, the value in use is used for the purpose of impairment of asset. If the…

Q: which of the following statements in relation to the cost of the asset is true? A. all of the…

A: The balance sheet represents the financial position of the business with assets, liabilities on a…

Q: In a replacement analysis, the market value of the currently owned asset a. does not impact the cash…

A: With the passage of the time, old assets are outdated and more cost is incurred to maintain. So, it…

Q: The amortization process is like what other process?A. depreciationB. valuationC. recognizing…

A: Some assets loses out their value over the period of time. These can be fixed assets or natural…

Q: Assets are usually valued at?   a.Historical Cost b. Residual Value c. Net Realizable Value d.…

A: Assets are the resources that are owned by the organizations. Assets can be current or non-current.

Q: In view of the investor, what is the best type of depreciation method? Justify your answer in terms…

A: solution declining balance method of depreciation                 Declining balance of method is a…

Q: How does depreciation expense differ from other operatingexpenses?

A: Depreciation: It refers to a gradual decrease in the fixed asset’s value because of obsolescence,…

Q: Which of the following best describes depreciation? A It is a means of spreading the payment for the…

A: Depreciation represents how much asset's value has been used and charge the same as expense in the…

Q: What is the difference between the cost of a fixed asset and its accumulated depreciation called?…

A: Accumulated depreciation is the total of all the depreciation that has been charged to the asset…

Q: Depreciation expense is calculated using its cost, estimates of an asset's salvage value, and an…

A: Straight line depreciation formula: Depreciation = (Cost of asset - salvage value) / Life of the…

Q: Explain how depreciation expense satisfies the definition of an expense

A: Depreciation is the amount with which an asset’s value decreases every year. Example:- Machinery…