The asset manager is generally NOT responsible for: Finding properties for the investor/principal Arranging financing for properties Overseeing the due-diligence of the purchase for the investor/principal Making maintenance decisions
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A: Cost of home = $200,000 Down payment = 10% Loan amount (PV) = 200,000*(1-0.10) ...
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- Which one of the following is not an indicator of the transfer of control to the buyer? Group of answer choices Seller has transferred physical possession of property. Seller has legal title to the asset. Seller has present right to payment for the asset. Customer has accepted the asset.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.Depreciation continues to be one of the most controversial, difficult, and important problem areas in accounting. Required: 1. Explain the conventional accounting concept of depreciation accounting, and discuss its conceptual merit with respect to (a) the value of the asset, (b) the amount(s) expensed, and (c) the discretion of management in selecting the method. 2. Answer the following: a. Explain the factors that should be considered when applying the conventional concept of depreciation to the determination of how the value of a newly acquired computer system should be assigned to expense for financial reporting purposes. (Ignore income tax considerations for this case.) b. What depreciation methods might be used for the computer system?
- MCQ: Choose only the correct answer Which of the following statements is false? (a) Financial Instruments are intangible assets (b) Goodwill is not amortizable (c) Goodwill can be identified only in business combination situation (d) Straightline method is generally used to calculate amortazation Which of the following will not be considered while calculating the depletion base? (a) Acquisition costs (b) Tangible development costs (c) Restoration Costs (d) Intangible development costs Which of the following will not be included into the the original cost of a land? (a) Legal fees (b) Brokers' commision (c) Property taxes (D) Accrued property taxes of previous owner The journal entry to record the transportation cost paid by the purchaser under periodic inventory system is- (a) Inventory Dr. and Cash Cr. (b) Transportation-in Dr. & Cash Cr. (c) Delivery Expense Dr. & Cash Cr. (d) Transportation-Out Dr. & Cash Cr. In case of change in estimate of useful life for a tangible…An asset manager's responsibilities would NOT include decisions pertaining to Group of answer choices the timing of capital expenditures. converting from rental units to condominium ownership. expanding the number of rental units within the complex. advertising alternatives to find new tenants.It is the gradual diminution of the useful value of tangible property resulting from wear and tear and normal obsolescence. It is also applied to the amortization of intangible assets the use of which in the trade or business is definitely limited in duration. Group of answer choices Depreciation Depletion Obsolescence Bad debts
- Which of the following best describes why auditors audit leased assets in conjunction with the audit of property, plant & equipment? Multiple Choice (B & D are incorrect) A. Most leased assets should be capitalized. B. Repairs and maintenance expense is affected by leased assets. C. Management may choose to lease assets rather than buy them. D. Leased assets have a higher risk of misstatement.Which transaction is not processed in the fixed asset system? a. purchase of building b. repair of equipment c. purchase of raw materials d. sale of company vanTRUE OR FALSE? Once decided by management as an asset held for sale, management can never change its decision to revert back an asset as part of property, plant and equipment.
- Depreciation continues to be one of the most controversial, difficult, and important problemareas in accounting 1. Explain the conventional accounting concept of depreciation accouting,and discuss its conceptual merit with respect to ( a) the value of the asset, (b) the amount( s) expensed, an ( c) the discretion of management in selectin g the method. 2. Answer the following: a. Explain the factors that should be considered when applying the conventional concept of depreciation to the determination of how the value of a newly acquired computer system should be assigned to expense for financial.Objectives of the fixed asset system do NOT includea. authorizing the acquisition of fixed assets.b. recording depreciation expense.c. computing gain and/or loss on the disposal of fixed assets.d. maintaining a record of the fair market value of all fixed assets.What is the purpose of charging depreciation in financial statements? A To allocate the cost of a non-current asset over the accounting periods expected to benefit from its use B To ensure that funds are available for the eventual replacement of the asset C To reduce the cost of the asset in the statement of financial position to its estimated market value D To account for the ‘wearing-out’ of the asset over its life