Over the life of a depreciable asset, its recorded cost decreases, the related accumulated depreciation increases, and its book value remains constant
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: Which of the following events is most appropriately recorded as reduction to accumulated…
A: Answer - An improvement that extends an asset's useful life is most appropriately recorded as a…
Q: Which combination of depreciation methods and useful lives is most conservative in the year a…
A: According to the conservative approach, the depreciation expense will be reported higher and profit…
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: What is the systematic periodic transfer of the cost of a fixed asset to an expense account during…
A: It is a measure of the wearing out, consumption or other loss of value of depreciable asset arising…
Q: Which one of the following statement about diminishing balance method is NOT true? Depreciation…
A: Introduction: Depreciation: Decreasing value of fixed assets over it's useful life period called as…
Q: Which depreciation method ignores residual value until the last year of depreciation? Why?
A: Double declining method of depreciation does not consider residual value while calculating…
Q: What element must be present when determining if an asset is a depreciating asset? a. An asset…
A: Depreciation is a reduction in the value of assets due to the usage of that asset. depreciating…
Q: Statement 1: The cost of an asset, or other amount substituted for cost, less its residual value is…
A: Depreciation: It implies to a reduction or fall in the value of fixed assets as a result of its…
Q: True or false SL depreciation assumes that an equal share of the total depreciation is not taken…
A: The depreciation expense is charged on fixed assets as reduced value of the fixed asset with usage…
Q: When the estimate of an asset's useful life is changed, select the false statement a. depreciation…
A: Depreciation refer to fall in the value of asset every year. It is an accounting word that refers to…
Q: True or False: Using the MACRS method of depreciation, an asset's Book Value will depreciate to $0…
A: MACRS is also written as modified accelerated cost recovery system. It is used to depreciate the…
Q: Profit on sale of fixed assets arises when: Sale price is more than the original purchase value of…
A: Profit on the sale of fixed assets arises when the book value of the asset is less than the selling…
Q: Which of the following statements is true when comparing double declining balance depreciation to…
A: Depreciation is defined as the reduction in the book value of the asset due to its usage in the…
Q: Residual value is O a. Present value. O b. Value in use. O . The net cash amount that is received…
A: The fixed assets may have a residual value that can be attained at the end of its life.
Q: What is the double declining balance depreciation calculation? O Long-term assets that lack physical…
A: Double Declining balance method of depreciation: This is one of the methods to calculate the…
Q: Which combination of depreciation methods and useful lives is most conservative in the year a…
A: As compare to other combination methods of depreciation, Declining balance depreciation with a long…
Q: Which of the following will maximize net income by minimizing depreciation expense in the first year…
A: In the first year of asset's life, depreciation expense can be minimised by maximising net income by…
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: Evaluate the consequences of depreciation charged on the historical cost of the assets. I)…
A: Please see the next step for the solution
Q: In depreciation analysis, the method that will yield the highest book value at the end of n years is…
A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…
Q: The book value of an asset is equal to thea. Replacement cost.b. Asset’s cost less accumulated…
A: Every asset has a limited period of life. With the continuous use of an asset in the course of…
Q: Why does the depreciation included in computing the annual cost of annual worth method but not in…
A: Depreciation is a separate provision for fixed assets. Fixed amount is charged out of profit during…
Q: Depreciation: A. Measures the decline in market value of an asset. B. Measures physical…
A: Depreciation is the wear and tear of an asset that is expensed over the useful life of the asset.…
Q: The depreciation increases the book value of equipment shown in the balance of its accumulated…
A: In accounting terms, depreciation is defined as the reduction of recorded value of a fixed asset in…
Q: depreciable, the absence of depreciation
A: Depreciation refers to the decrease in the value of an intangible asset over a period of time. There…
Q: double-declining-balance method,
A: Depreciation = (1/Useful life) * 100 *2
Q: Accumulated depreciation is record on the balance sheet as ___? A. A reduction in corresponding…
A: The depreciation expense is charged on fixed assets as reduced value of the fixed asset with usage…
Q: the equation for book value is: book value = cost of an asset minus its accumulated depreciation.…
A: Asset: Asset is a resource owned by a company from which future economic benefits are expected to…
Q: The estimated economic life of an asset is also known as ________. A. residual value. B.…
A: Estimated life refers to the estimated economic life or useful life which means the assets will be…
Q: fixed asset's estimated value at the time it is to be retired from service is called market value…
A: The fixed assets are the tangible assets which can be measured at cost or revaluation based on…
Q: 1. Depreciation is referring to the allocation of the depreciable amount over its estimated useful…
A: 1. Depreciation is referring to the allocation of the depreciable amount over its estimated useful…
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: For financial accounting purposes, depreciation expense represents the decreasein an asset's fair…
A: "Since you have asked multiple questions, we will solve first question for you. If you want any…
Q: Which of the following statements is true when the straight-line method is used to compute…
A: Using Straight line method , Amortization Expense = Amortization cost / Asset's estimated useful…
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: In a written down value method, the amount of depreciation O a. Increases year after year O b.…
A: Please see the next step for the solution
Q: Which of the statements is incorrect concerning the depreciation methods? * a. Under the output…
A: Depreciation is a reduction in the value of assets due to usage or passage of time. The decreased…
Q: depreciation expense for past periods must be recalculated. depreciation expense for future years…
A: The right answer is option c. depreciation expense for the current and future years is changed.
Q: The difference between the purchase cost of an asset and its value at the end of the life is known…
A: Introduction: Depreciation: Decreasing value of fixed assets over its useful life period called as…
Q: Which of the following statements is the assumption on which straight line depreciation is based?…
A: Straight line method is the most simplest method of charging depreciation on Plant, Machines,…
Q: With straight-line depreciation, the book value of the asset is reduced by the same amount each…
A: straight line depreciation is a method of depreciation under which the asset value is depreciated…
Q: Which depreciation method ignores residual value when computing the depreciable base of an asset?…
A: Option B is correct. Double declining balance method Double declining method ignores residual value…
Q: Which of the following best describes depreciation? A It is a means of spreading the payment for the…
A: Depreciation represents how much asset's value has been used and charge the same as expense in the…
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- For financial accounting purposes, depreciation expense represents the decreasein an asset's fair market value. Select one: True False The total amount of depreciation taken over the life of a depreciable asset should be less if the double-declining balance depreciation method is used than if the straight-line method is used. Select one: True FalseWhen 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 decreasesWhich method of deprecaution is used when the cost of an asset is written off in equal amounts over its expected economic life? A fixed instalment B accelerated C sum of the digits D diminishing balance
- True or False: In accounting, depreciation represents the decrease in a long-term tangible asset’s fair market value over time.True or False: Regardless of the depreciation method used, the book value of a tangible long-term asset at the end of its useful life should equal the asset’s residual value.Which of the following statement best describes depreciation? a. It is a means of spreading the payment for non-current assets over a period of years b. It is a decline in the market value of assets c. It is a means of spreading the cost of non-current assets over the estimated useful life d. It is a means of estimating the amount of money needed to replace the assets
- When the estimate of an asset's useful life is changed, * depreciation expense for past periods must be recalculated. depreciation expense for future years is not changed. depreciation expense for the current and future years is changed. None of the abovedepreciation is a. the decrease in value of a fixed asset due to ear and tear, passage of time, or obsolescence b. wages reach the point, the deductions or withholding) will stop c. record expenses when they occur and not when they are paid, as well as record income when its earned d. report income in the year it is received and deduct expenses in the year paidWhich 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 depreciation
- 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.Profit is earned on sale of asset when a. Sale price is less than Accumulated Depreciation b. Sale price is more than Accumulated Depreciation c. Sale price is more than book value d. Sale price is less than book valueWhich of the following best describes depreciation?A It is a means of spreading the payment for the asset over its total estimated lifeB It represents the decline in the market value of the assetC It is a means of spreading the cost of an asset over its estimated useful lifeD It is a way of estimating the cash needed to replace the asset in the future