Depreciation is generated due to a. Increase in the value of liability Ob. Decrease in capital C.Wear and tear Od. Decrease in the value of assets
Q: depreciation is a. the decrease in value of a fixed asset due to ear and tear, passage of time, or…
A: When any business purchase any fixed assets, then every year value of the assets will decrease due…
Q: When the useful life of an asset is more accurately defined in terms of how much it is used rather…
A: Depreciation is a reduction in the value of assets due to the usage of that asset. We can evaluate…
Q: Repairs and maintenance costs are normally: O a. Expensed in the profit or loss as incurred. O b.…
A: All expenses which are having short term benefit or benefit for only one year, that should be…
Q: It is a permanent reduction in the value of a company's asset Depreciation Impairment Revaluation…
A: The term depreciation applies to tangible assets like machinery, furniture, vehicles and building…
Q: The adjusted basis of an asset is the original cost (or basis) plus capital recoveries less capital…
A: Adjusted basis: The amount of original cost, plus additional investments (capital expenditure) and…
Q: An investment property should be measured initially at O A. Cost. B. Cost less accumulated…
A: Investment property is a kind of asset that is part of the balance sheet of the company. It means…
Q: Any amount by which capital at the end of a period exceeds the amount required to maintain opening…
A: Any amount by which capital at the end of a period exceeds the amount required to maintain opening…
Q: Assets that are NOT expected to provide benefits for a number of accounting periods are called…
A: Solution: Assets that are NOT expected to provide benefits for a number of accounting periods are…
Q: Depreciation is: Oa. the loss in market value of an asset. Ob. the allocation of a long-term asset's…
A: Depreciation is an accounting method for reducing the total amount of a tangible or physical asset…
Q: Straight-line, sum of the year's digits and double declining balance are types of a. Appreciation b.…
A: Fixed Assets: Fixed Assets are those assets which are acquired by company for utilizing them in…
Q: Depreciation on machinery is debited to: A. Machinery a/c B. Profit and loss a/c C. Depreciation…
A: Golden Rules: Personal Account: Debit the Receiver, Credit the Giver Real Account: What comes in…
Q: Which of the following would trigger a subtraction in the indirect operating section? A. decrease in…
A: The correct option is B that is, gain on sale of investments as it is a non-operating gain that is…
Q: The process of transferring the cost of an asset to an expense account over time is called O A)…
A: Property, plant, and equipment: These assets are long lived economic resources which are owned by…
Q: Initial operating loss related to Property, Plant and Equipment should be A. Capitalized as part of…
A: Answer:- Operating loss:- If a company's operational expenditures surpass its gross earnings, the…
Q: Given the dual effects of accountable events, an decrease in an asset cannot possibly be accompanied…
A: Assets = Liabilities + Stockholders equity Every transaction has dual effect . The question is…
Q: declining-balance method of depreciation
A: Declining balance method of depreciation can also be called the diminishing balance method or the…
Q: Accumulated Depreciation a.is the same as Depreciation Expense b.is used to show the amount of cost…
A: Whenever fixed assets are purchased in business, then their value decreases over life of the asset.…
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: A journal entry has only two lines: a) Increase in an asset, b) Decrease in Revenue. Multiple…
A: The question is related to the Correct Journal Entry. There are three golden rules of Accounting. 1.…
Q: Which of the following is correct when recording the disposal of equipment for a gain? Group of…
A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…
Q: The gain on impairment loss reversal of an asset which is recognized in profit or loss is computed…
A: The loss of impairment is recognized in the income account and the reversal of the impairment loss…
Q: Which of the following is Not correct An increase in a liability may result in a decrease in owner's…
A: The accounting equation is known as the equation that describes the transaction in accounting form.…
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: In adjusted P & L account, depreciation on fixed assets will be [A] debited [B] credited [C]…
A: The Profit and Loss Adjustment Account is prepared to account for any error or omission; thus, these…
Q: Debit: decrease both assets and liabilities. a. increase assets and decrease Ob. liabilities.…
A: The accounting records are made on two basis of debit and credit.
Q: A. True or False: ________ 1. Depreciation is the decline in the market value of tangible fixed…
A: Introduction:- Depreciation is a non cash expenditure. It is charged on fixed assets over estimated…
Q: Give an example of a transaction that results in: a. A decrease in an asset and a decrease in a…
A: Transaction analysis: Transaction analysis is an economic event that causes impact on the value of…
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: A ____ will cause Accumulated Depreciation to decrease. A. Debit B. Credit
A: Particulars debit credit Depreciation Amt Accumulated depreciation Amt
Q: Which of the following is correct about "Cost", "Expense", and "Loss" concepts? Select one: a.…
A: Income statement is one of the significant financial statements and the two components of this…
Q: (a) The depreciable cost (b) The straight-line rate (c) The annual straight-line depreciation %
A: Introduction:- Straight line depreciation is a common and simplest method of calculation…
Q: Depletion of a natural resource us typically recorded as a. Debit to an invenrory account b.…
A: journal entry for depletion expense is - depletion expense account debit </p><p>…
Q: Profit is earned on sale of asset when a. Sale price is less than Accumulated Depreciation b. Sale…
A: Depreciation means the loss in value of assets because of usage of assets , passage of time or…
Q: Under IFRS, the initial revaluation of equipment when book value exceeds fair value results in a. An…
A: As per International Financial Reporting Standards (IFRS), the company values the property, plant…
Q: Revaluation account is normally not credited with which of the following items: Increase in the…
A: Revaluation account is usually prepared to report the variations in the worth of assets and…
Q: Adjustment for: 1- depreciation and amortization: added in net income 2- increase in deferred task…
A: Cash flows statement is one of the financial statement which shows all cash inflows and cash…
Q: According to PFRS 9, impairment gain
A: As per PFRS9 impairment losses and impairment gains (in the case of purchased or originated…
Q: Depreciation occurs as a result of: A. Wear and tear B. Decrease in the value of assets C. Increase…
A: Since depreciation is occurse as a result of normal wear and tear and due to which it causes a…
Q: When Accumulated depreciation account is credited with the amount of depreciation a. The cost of…
A: When Depreciation on Fixed Assets cumulated every year and credited to Accumulated Depreciation It…
Q: The term income a. includes revaluation of land b. includes adjustment of prior period error c.…
A: Income Statement An income statement refers to an important financial statement that provides…
Q: Depreciation refers to a) Decrease in the value of Tangible Fixed Assets b) Decrease in the value of…
A: Depreciation: Deterioration is the thing that happens when resources lose esteem over the long haul…
Q: Which of the following events will NOT increase the demand for assets? A. Decline in wealth…
A: Assets refers to any capital expenditure that will generate recurring returns to holder over long…
Q: QUESTION 19 When a company decreases the estimated useful life of a PP&E asset O a. It is admitting…
A: Depreciation refers to a decline in asset value over its useful life.
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: What is the most likely impact on return on assets of a decrease in PP&E turnover, all else equal?…
A: PP&E Turnover shows how effectively company used the Property, Plant and Equipment to generate…
Q: Depreciation expense under the invenroty system is a. Based on cost minus residual value b.…
A: Depreciation = (Cost - Residual value) / Life of asset
Q: While calculating operating profit which will not be added back to net profit a. Preliminary…
A: Solution:- While calculating operating profit the following item will not be added back to net…
a. Increase in the value of liability
Ob. Decrease in capital
C.Wear and tear
Od. Decrease in the value of assets
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Accumulated depreciation is record on the balance sheet as ___? A. A reduction in corresponding liability B. A reduction to the corresponding asset C. An increase in the corresponding liability D. An increase in the corresponding assetWhen Accumulated depreciation account is credited with the amount of depreciation a. The cost of Fixed asset increases b. The cost of Fixed asset remains the same c. The cost of Fixed asset decreases d. The depreciation account decreasesA decrease in economic benefits or decrease in assets or increase in liability resulting in decrease in equity is termed as. a. Capital b. Income c. Expense d. Liability
- a. record the entry to adjust asset values to fair value b. record the entry to reduce additional paid in capital balance to correct figure, to close out gain account, and eliminate deficit.While calculating operating profit which will not be added back to net profit a. Preliminary Expenses Written off b. Depreciation c. Loss on Sale of Asset d. Rent ExpensesGive an example of a transaction that results in: a. A decrease in an asset and a decrease in a liability. b. A decrease in one asset and an increase in another asset. c. A decrease in one liability and an increase in another liability.
- The term expense represents a decrease in asset that always results in decrease in equityAdjustment for accrued revenue requires a/an choose correct answer a. decrease liabilities increased revenue b. decrease asset decrease revenue c. increase asset increase revenue d. increase liabilities decrease revenuesWhen recording depreciation, which of the followingstatements is true?a. Total assets increase and stockholders’ equityincreases.b. Total assets decrease and total liabilities increase.c. Total assets decrease and stockholders’ equityincreases.d. None of the above are true
- 1. If a Revaluation of an asset is done for the first time and there is a revaluation gain, this should be shown in a. Other Comprehensive Income as a Negative figure b. Other Comprehensive Income as a Positive figure c. The Statement of Profit and Loss Account as an Expense d. The Statement of Profit and Loss as IncomeWhat is the effect on the financial statements of recording depreciation on equipment?a. Assets are decreased, but net income and stockholders’ equity are not affected.b. Net income is not affected, but assets and stockholders’ equity are decreased.c. Net income, assets, and stockholders’ equity are all decreased.d. Net income and assets are decreased, but stockholders’ equity is not affectedGive an example for each of the following types of transactions: A)Increase in one asset, decrease in another asset. B)Increase in asset, increase in liability C)Increase in asset, increase in owner's capital