Land is not a depreciable asset because_ A.) land is not consumed over time B.) land can only appreciate over time C.) purchases of land are classified as liabilities and not assets D.) The cost of land cannot be accurately determined

Land is not a depreciable asset because_ A.) land is not consumed over time B.) land can only appreciate over time C.) purchases of land are classified as liabilities and not assets D.) The cost of land cannot be accurately determined

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 4MC: Which of the following statements about capitalizing costs is correct? A. Capitalizing costs refers...

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Question

Land is not a depreciable asset because
A.) land is not consumed over time B.)
land can only appreciate over time C.) purchases of land are classified as liabilities and not
assets D.) The cost of land cannot be accurately determined

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Which statement concerning depreciation is false? a.The only property that has a determinable life is depreciable. B.Land is not depreciable. C.Intangible assets' capital costs are recovered through amortization, much like depreciation. D.Personal property converted to business use is not depreciable since it was once used for personal purposes.
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Similar to land, land improvements are not subject to annual depreciation. TRUE OR FALSE?
The systematic allocation of land's cost to expense is called depreciation. True False
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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.
What is a relevant cost? Explain why depreciation on an existing asset is always irrelevant.
Which one of the following statements is not true regarding depreciation? a. It is a systematic, rational method of allocating the cost of an asset over its useful life b. It attempts to match the costs of acquiring an asset to the benefits to bederived from the asset c. It does not attempt to measure the value of the asset d. It provides funds for the replacement of the asset through tax savings over the asset's life
___________ and __________ are examples of a depreciable asset, while ____________ and ____________ are examples of non-depreciable assets that can be used to generate business or property income.
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Which sentence is incorrect? Select one: a. Depreciation is not the actual change in the value of the asset. b. Accumulated Depreciation account has effects on the cash flow statement. c. Accumulated Depreciation is called a contra asset account. d. Depreciation is the process of allocating the cost of an asset to expense, not a valuation process.
Why is the cost of certain kinds of property not recoverable at all by way of depreciation, depletion, or amortization deductions? In addition to answering that question, give three examples of the kinds of assets that are not subject to “cost recovery”.