How would you define depreciation and explain its purpose to someone who is not taking this course? Why do we keep track of depreciation using our "Accumulated Depreciation" account and what does Book Value for an asset mean to vou?

How would you define depreciation and explain its purpose to someone who is not taking this course? Why do we keep track of depreciation using our "Accumulated Depreciation" account and what does Book Value for an asset mean to vou?

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 13MC: Which of the following represents an event that is less routine when accounting for long-term...

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How would you define depreciation and explain its purpose
to someone who is not taking this course? Why do we keep
track of depreciation using our "Accumulated Depreciation"
account and what does Book Value for an asset mean to
you?

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Which of the following represents an event that is less routine when accounting for long-term assets? A. recording an asset purchase B. recording depreciation on an asset C. recording accumulated depreciation for an asset or asset category D. changing the estimated useful life of an asset
Explain why depreciation on an existing asset is always irrelevant.
Which of the following is true regarding special issues in accounting for long-term assets? A. An assets useful life can never be changed. B. An assets salvage value can never be changed. C. Depreciation expense calculations may need to be updated using new and more accurate estimates. D. Asset values are never reduced in value due to physical deterioration.
What is a relevant cost? Explain why depreciation on an existing asset is always irrelevant.
Which of the following statements about capitalizing costs is correct? A. Capitalizing costs refers to the process of converting assets to expenses. B. Only the purchase price of the asset is capitalized. C. Capitalizing a cost means to record it as an asset. D. Capitalizing costs results in an immediate decrease in net income.
A) What is residual value? Support your answer with an example ( word count 100) B) In practise, would you expect the depreciation expense for a non-current asset to be overestimated or underestimated? Explain why this is the case.
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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.
Why do we need to depreciate our property, plant, and equipment? (Discuss also the treatment of depreciation expense in the financial statements.) Please don't copy paste answers you will provide. Make it original thank you.
can you give me an example of straight line depreciation and explain it
What is Accumulated Depreciation? I'm having a hard time understanding this concept. For example, what is Accumulated Depreciation - Equipment, and how is it recorded? Please explain.
Which statement about depreciation is false?a. A major objective of depreciation accounting is to allocate the cost of using an assetagainst the revenues it helps to generate.b. Depreciation should not be recorded in years in which the market value of the asset hasincreased.c. Obsolescence as well as physical wear and tear should be considered when determiningthe period over which an asset should be depreciated.d. Depreciation is a process of allocating the cost of an asset to expense over its usefullife.