Salvage value is not considered directly in the determination of the deprecation amount with the a.sum-of-the-years'-digits method. b.straight-line method. c.declining-balance method. d.units-of-production method.
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- 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.The salvage value is a component of the calculation of the double declining balance (DDB) depreciation method.True or False..Which statement regarding depreciation is incorrect? * Depreciation of noncurrent operating assets is an accounting process for the purpose of allocating asset costs over the periods benefited by use of the assets Service value declines as a function of time rather than use, is the assumption on which straight-line depreciation is based The composite depreciation method does not recognize gain or loss on the retirement of specific assets in the group. The double-declining-balance method ignores salvage value in calculating periodic depreciation expense. none of the above
- 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.Which of the following depreciation methods initially ignores salvage value in its calculation? a.Declining-balanceb.Sum-of-the-years'-digitsc.Straight-lined.Units-of-productionThe 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.
- Which of the following statements about MACRS is false?A. Depreciable assets are assumed to have no residual or salvage value.B. Every depreciable asset is assigned to one of ten recovery periods.C. Allowable depreciation methods are based on the assets assigned recovery period.D. None of the above is false. please explain without plagiarismWhich of the following depreciation methods can NOT depreciate an asset below its salvage value? a.Sum-of-the-years'-digits methodb.Units-of-production methodc.Straight-line methodd.All of these cannot depreciate below salvage valueWhich of the following depreciation methods will result in the most depreciation expense over the life of an asset? Select one: a. Double-declining balance method b. All three methods will result in the same amount of depreciation expense. c. Units-of-production method d. Straight-line method e. Cannot be determined from the information given.
- The cost of an item, an estimate of its salvage value, and an expected usable life are all factors used to compute depreciation. To be honest, I'm not sure.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.The depreciation method that does not initially use the residual value in depreciation calculations is thea. straight-line method.b. units-of-production method.c. double-declining balance method.d. direct method.