For what reasons are plant assets retired? Define inadequacy,supersession, and obsolescence.

Q: When an item of property, plant, and equipment is disposed of, how is gain or loss on disposal…

A: When an item of property, plant and equipment is disposed of, then gain or loss is determined by…

Q: Depreciation is the process of allocating the cost of a plant asset to expense in the accounting…

A: Plant is purchases in the year of its purchase. But the benefit from the plant comes in later years…

Q: Understand accounting issues related to acquiring and valuing plant assets.

A: Following are the accounting issues that are related to acquiring and valuing plant assets: a)  Cash…

Q: What is the general rule for cost inclusion for plant assets?

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

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Q: What are plant assets?

A: Solution:- Plant assets means as follows under:-

Q: What are the characteristics of plant assets?

A: Plant Asset: A plant asset is an asset purchased by the business that has a useful life exceeding…

Q: Accounting for plant assets involves cost determination, depreciation, additional expenditures, and…

A: International Financial Reporting Standards (IFRS) They are commonly known as IFRS. It is a set of…

Q: What characteristics of a plant asset make it different from other assets?

A: Assets means anything which will enable a business enterprise to get cash or benefit in…

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: Depreciation is the process of allocating the cost of a plant asset to expense in the accounting…

A: Plant means the fixed assets which is used in business for furtherance of business and not held for…

Q: Which of the following is not a major characteristic of a plant asset? Possesses physical substance…

A: An asset is a resource with economic value that a firm controls in lieu of that it will provide a…

Q: ulness, the cost of fixed assets is sys

A: The correct answer is  b. Equipment Allocation     As Time Passes, Fixed Assets, Other Than…

Q: What are the major characteristics of plant assets?

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Q: Describe the derecognition of property, plant, and equipment and intangible assets

A: An asset is something that gives benefits in the future to its owner. There are generally two types…

Q: Is property, plant and equipment is classified as non-current assets?

A: Generally, the liquidity of the assets plays a significant role in determining whether they are…

Q: Explain the concept of VALUE IN USE. Why can it be a basis for recoverable amount of an item of…

A: Value in use means the asset’s net worth for the present time. Value in use is used to take decision…

Q: On your own words, describe the methods that companies can implement to depreciate plant assets.

A: The methods to depreciate the plant assets are as follows, Straight Line Depreciation: This is also…

Q: A gain or loss on disposal of a plant asset is determined by comparin O replacement cost of the…

A: In the business world, the term "book value" was coined to indicate the current value of a…

Q: Differential analysis can aid management in making decisions on a variety of alternatives, including…

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Q: What is a portion of plant asset cost allocated as expense for the period? What is the difference…

A: Carrying Amount: The carrying amount is the purchase price less impairment and depreciation and is…

Q: How can I compute the acquasition of plant assets?

A: The acquisition cost incurred on a plant asset is the cost expended to acquire and place the asset…

Q: Identify events that might lead to disposal of a plant asset.

A: An asset is a resource owned by an enterprise and which can generate values in the future. Assets…

Q: Which of the following is not a major characteristic of a plant asset? Long-term in nature Possesses…

A: We should first understand the meaning of plant asset first. Plant asset is also known as property,…

Q: The unrealized gains and losses from intercompany transactions involving plant assets might be…

A: Depreciable assets are those assets that are eligible for taxation and accounting purposes for…

Q: Explain the appropriate accounting treatment required when a change is made in the service life or…

A: Depreciation: Depreciation refers to the reduction in the monetary value of a fixed asset due to…

Q: What are plant assets?

A: Assets are the economic resource held or owned by the business entity for conducting the regular…

Q: Revenue expenditures: Multiple Choice Are costs that do not materially increase a plant asset's life…

A: Revenue expenditures are not included in the cost of the asset. Capital expenditure are included in…

Q: Explain what is meant by the impairment of the value of property, plant, and equipment and…

A: Property, Plant, and Equipment:  Property, Plant, and Equipment refers to the fixed assets, having a…

Q: Explain the process of ‘impairment of an asset’ and its definition? Explain how to account for an…

A: Impairment of assets means reducing the cost of assets when carrying amount is more than value in…

Q: What is meant by the “depreciable cost” of a plant asset?

A: The assets having the life of more than a year can be classified as non-current or plant assets.…

Q: Plant assets are recorded at historical cost. What does the historical cost of a plant asset…

A: Plant assets are recorded at historical cost. Historical cost includes: Asset purchase price,…

Q: Describe the impairment of property, plant, and equipment and intangible assets

A: The impairment loss could be considered with the time when the assets is not considered valuable in…

Q: What is the process of allocating the cost of a plant asset over its useful life called?

A: Depreciation:Depreciation is the reduction in the value of an asset over its useful life. An asset…

Q: How is gain or loss determined when disposing of plant assets? What situation constitutes a gain?…

A: Disposal of plant assets, may result in gain or loss.

Q: What is the process by which businesses spread the allocation of an intangible asset’s cost over its…

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Q: Explain the accounting issues related to acquiring and valuing plant assets.

A: Following are the accounting issues that are related to acquiring and valuing plant assets: a)  Cash…

Q: How is the discarding of a plant asset different from selling a plant asset?

A: Plant asset: Plant assets are buildings, equipment, machinery and other assets. These assets are…

Q: Why are the cost of plant/long term assets recovered through depreciation vs. expensed out during…

A: Answer : The fixed assets are long-run assets. they assist within the production of goods and…

Bookkeeping

Bookkeeping is the process of recording the financial transactions of a company on a regular basis. With the process of bookkeeping, companies can track important financial information that helps management in making crucial decisions.