9. For some of the fixed assets of a business, thebalance in Accumulated Depreciation is equalto the cost of the asset. (a) Is it permissible torecord additional depreciation on the assets ifthey are still useful to the business? Explain. (b)When should an entry be made to remove thecost and the accumulated depreciation from theaccounts?

The value of the fixed assets decreases over the period of time due to wear and tear so as to record…

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to the cost of the asset. (a) Is it perm record additional depreciation on the

Auditing: A Risk Based-Approach (MindTap Course List)

11th Edition

ISBN:9781337619455

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter5: Professional Auditing Standards And The Audit Opinion Formulation Process

Section: Chapter Questions

Problem 16CYBK: Which of the following accounts would not be included in the Acquisition and Payment for Long-Lived...

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Question

9. For some of the fixed assets of a business, the
balance in Accumulated Depreciation is equal
to the cost of the asset. (a) Is it permissible to
record additional depreciation on the assets if
they are still useful to the business? Explain. (b)
When should an entry be made to remove the
cost and the accumulated depreciation from the
accounts?

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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.
LO1 The purpose of depreciation is to record the assets market value in the accounting records.
Which of the following accounts would not be included in the Acquisition and Payment for Long-Lived Assets Cycle? a. Revenue b. Depreciation expense c. Gain on disposal d. Equipment
For some of the fixed assets of a business, the balance in Accumulated Depreciation is equal to the cost of the asset. (a) Is it permissible torecord additional depreciation on the assets if they are still useful to the business? Explain. (b) When should an entry be made to remove thecost and the accumulated depreciation from the accounts?
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For some of the fixed assets of a business, the balance in Accumulated Depreciation is exactly equal to the cost of the asset. (A) Is it permissible to record additional depreciation on the assets if they are still useful to the business? Explain. (B) When should an entry be made to remove the cost and the accumulated depreciation from the accounts? Please use at least 150 words to explain to avoid getting a bad grade.
15 - Which of the following statements about depreciation is false? a) Depreciation is a type of expense that does not require a cash outflow. B) As a result of use, wear, tear, depreciation or obsolescence must be experienced in the tangible asset. NS) The asset to be depreciated should be among the assets of the enterprise. D) Proportional depreciation method can be applied for all tangible fixed assets. TO) For a property, plant and equipment to be depreciated, its economic life must be more than one year.
Under what conditions is it appropriate for a businessto use the composite method of depreciation for itsplant assets? What are the advantages and disadvantagesof this method?
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