hen depreciation estimates are revised, all years of the asset’s life are affected. True False
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- The straight-line method of depreciation allocates the cost of an asset more rapidly than the sum-of-the-years-digits method.When the estimate of an asset's useful life is changed, select the false statement a. depreciation expense for all past periods must be recalculated. b. there is a change in the amount of depreciation expense recorded for future years. c. only the depreciation expense in the remaining years is changed. d. None of the above is trueWhich combination of depreciation methods and useful lives is most conservative in the year a depreciable asset is acquired? B . Declining balance depreciation with a long useful life.
- A change in depreciation method is to be accounted for in the current year and future years going forward True or FalseWhich combination of depreciation methods and useful lives is most conservative in the year a depreciable asset is acquired? C . Declining balance depreciation with a short useful life.The most appropriate reason for an increase in depreciation expense is that a. Depreciation for prior periods was overstated. b. Major repairs were not recorded. c. A depreciable asset was impaired. d. Retained earnings have been appropriated for a possible loss on retirement. e. Based on a re-evaluation, estimated salvage values have been lowered.
- What is the correct process for determining depreciation expense for partial periods? A: The straight line method should be used for the first year of the assets life. B: The salvage value should be equal to last year's depreciation amount. C: No depretiation should be expensed in the year of acquisition. D: Depreciation for physical years should be broken up between fiscal years.What element must be present when determining if an asset is a depreciating asset? a. An asset that holds its value for a period of time or increases in value for a period. b. An asset that has a limited effective life. c. A fixture that completely loses its value. d. An asset that cannot reasonably be expected to decline in value over time.Which of the following statements about depreciation is not true? A. Depreciation does not mirror the actual loss of value over time. B. Depreciation is the allocation of the asset’s cost to expense over the expected years of use. C. If the fair value of the asset increases, depreciation is reversed to reflect the change in value. D. U.S. GAAP requires depreciation methods to be systematic and rational.
- True or False Over the life of a depreciable asset, its recorded cost decreases, the related accumulated depreciation increases, and its book value remains constantWhich depreciation method ignores residual value when computing the depreciable base of an asset? a. sum-of-the-year's-digits b. double-declining-balance c. composite depreciation d. group depreciationWhich depreciation method ignores residual value until the last year of depreciation? Why?
