Some believe that accounting depreciation measures thedecline in the value of fixed assets. Do you agree? Explain.

Q: the amortization of intangible assets with finite useful lives is justified by the : a- economic…

A: a) Economic entity assumption states that a entity and the people managing it are different persons…

Q: The depreciation procedures that apply to the main kinds of depreciable assets in general?

A: Depreciation is an accounting method for allocating the cost of a tangible or physical asset over…

Q: "Depreciation is a valuation process that results in the reporting of the fair value of the asset.”…

A: Fixed assets: These are the assets which were used in the business for more than one year. These…

Q: What is advantages and disadvantages of centralization and decentralization? -Explain Effects of…

A:

Q: Can the selection of a depreciation method affect a company’s asset replacement policy (i.e., the…

A: 1. Depreciation Expenses - Depreciation Expenses are the expense incurred on the wear and tear of…

Q: Define the term Accounting for Depreciation?

A: Depreciation:   It is the reduction in the value of an asset due to factors like normal usage or…

Q: Which of the following does describe intangible assets? a. They are not lack physical existence.…

A: The correct answer for the above mentioned question is given in the following steps for your…

Q: How can the Gains and Losses on Depreciable Assets be determined?

A: For calculation of gains or losses on depreciable assets, written down value of the assets at the…

Q: True or False: Depreciation is the decline in the market value of tangible fixed assets.

A: Fixed assets are assets having a life of more than one year. Fixed assets like buildings, equipment,…

Q: Depreciation is a process of cost allocation, not valuation. Explain this statement.

A: Depreciation: Depreciation expense is a non-cash expense, which is recorded on the income statement…

Q: Identify the factors that are relevant in determining the annual depreciation charge, and explain…

A: Depreciation expense: Depreciation expense is a non-cash expense, which is recorded on the income…

Q: Explain the difference between tangible and intangible long-lived, revenue-producing assets.

A: Tangible assets are those assets which appear in the physical form and it is measurable. Assets like…

Q: What is the total loss on realization of assets?

A: Loss that is recognized when the assets are sold for a price is lower than the original purchase…

Q: Describe  accounting for depreciation of fixed assets?

A: The depreciation is the reduction in the value of fixed assets with the usage and passage of time.

Q: Depreciation is a valuation process that results in the report-ing of the fair value of the asset.”…

A: Depreciation is a form of non-cash expenditure which represents the normal wear & tear and…

Q: What is the DuPont method of analysis and how does it break down return on assets

A: Given : This question tells about the DuPont method of analysis and how does it break down return on…

Q: What is the relationship between depreciation and net income?

A: Depreciation is the part of cost of a asset which is charged to income statement yearly as a expense…

Q: What is meant by straight line method if charging depreciation?

A: Depreciation: Depreciation refers to the reduction in the monetary value of a fixed asset due to its…

Q: What are the different types of accounting depreciation and their primary purposes?

A: Methods of Depreciation: Depreciation refers to the reduction in the monetary value of a fixed asset…

Q: Explain about the existence of an active market in relation to the intangible assets and the…

A: Here discuss about the details of intangible assets and its valuation and accounting treatment which…

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: Explain the term Treatment of Depreciation Expenses?

A: Depreciation is a charge calculated on the value of fixed assets, based on normal wear and tear due…

Q: Under what circumstances will you consider the reducing balance method as the most appropriate…

A:

Q: Describe the method of the asset's depreciation?

A: Methods of Depreciation: Depreciation refers to the reduction in the monetary value of a fixed asset…

Q: Describe the important properties of fixed assets?

A: Since you have posted a question with multiple questions, we will solve the first question for you.…

Q: The difference between book value of the asset with the proceeds received from its sale, will result…

A: The book value of an asset is the value of the asset calculated by deducting the accumulated…

Q: The cost of an asset that is subject to depreciation is called?

A: The cost of an assets that is subject to depreciation is called depreciable cost and not the actual…

Q: Explain what is meant by an accelerated depreciationmethod. Are accelerated methods more widely used…

A: The term accelerated depreciation implies that in the early years of the existence of the asset,…

Q: Illustrate the significance of depreciation and income taxes?

A: Depreciation is the charge against the usage, wear and tear or obsolescence of the asset in the…

Q: Explain how the DuPont system of analysis breaks down return on assets?

A: As per DU point analysis, ROA(retrun on asets)=(Net Income/Sales)*(Sales/Average Assets)

Q: What contra account is used when recording and reporting the effects of depreciation? Why is it…

A:

Q: The amortization process is like what other process?A. depreciationB. valuationC. recognizing…

A: Some assets loses out their value over the period of time. These can be fixed assets or natural…

Q: What are two advantages to basing the valuation of assets and liabilities on their historical cost?

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Q: Please explain Tangible and Intangible Assets. What are types of both? Also Intangible Assets are…

A: Step1: Definition of tangible asset and intangible assets. We have,Tangible assets are those assets…

Q: Is Penny correct? Do the terms depreciation, depletion, and amortization all mean the same thing?

A: Amortization: It is the process of allocating the value of an intangible asset over its definite…

Q: what is the important difference in the acquisition and payment of long-lived assets compared to…

A: Assets are the resources owned by an entity for the purposes of using them for future or for…

Q: How does depreciation expense differ from other operatingexpenses?

A: Depreciation: It refers to a gradual decrease in the fixed asset’s value because of obsolescence,…

Q: The generally accepted accounting principle that supports recording the value of a property at the…

A: Monetary principle says that a business should only record transaction if it is measured in monetary…

Deferred Tax

Deferred tax is an estimated future tax which is made while preparing accounts. It is estimated as a result of past and present transactions in the financial statements. It is not the actual tax which needs to be paid or refundable from the revenue authority, it is an accounting entry. It exists because of the difference between accounting profits and taxable profits.