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?

Q: What are the major factors considered in determiningwhat depreciation method to use?

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

Q: As generally used in accounting, what is depreciation?  a. It is an accounting process which…

A: Introduction: Depreciation: Decreasing value of fixed assets over its useful life period called as…

Q: How do businesses recover the cost of capitalized, intangible assets? O Direct write-off O…

A: Intangible assets are non-monetory assets and do not have physical existence. It includes goodwill…

Q: Is it permissible to record additional depreciation on the assets, if they are still useful to the…

A: If the assets are still useful to the business then the organisation need to record the Asset and…

Q: Illustrate the rules and laws that govern asset depreciation and the methods that accountants use to…

A: Any asset cannot last for life and hence its original value reduces because of its use which is…

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: Explain how the depreciation method selected affects the balance sheet and income statement

A: Depreciation is the loss in the value of the asset caused due to its usage, wear, and tear. There…

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: Explain how asset impairment differs from depreciation, depletion, and amortization. How do…

A: Depreciation,Depletion and amortization records the usage of a fixed asset over a period of time and…

Q: Which of the following most accurately reflects the concept of depreciation as used in accounting?…

A: Depreciation is a method of reducing the capitalized cost of long-lived operating assets or plant…

Q: ment of a long-term asset, the depreciation of a long-term asset, and the sale of a long-term…

A: The organization would be established for doing business in the market. Thus, it requires a lot of…

Q: A general description of the depreciation methods applicable to major classes of depreciable assets?

A: Depreciation is the allocation of cost of the asset over the useful life of the asset. Depreciation…

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

A: Assets: Assets are those resources that are owned by the business organization which has an economic…

Q: 1. Is it necessary for a business to use the same method of computing depreciation for all classes…

A: Depreciation is an accounting method for allocating a tangible or physical asset’s cost over its…

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: An entity that acquires an intangible asset may use the revaluation model for subsequent measurement…

A: Lets start with basic understanding. Intangible asset is considered under IAS 38 " Intangible…

Q: Why would companies choose one method of accounting for Depreciation over another method?  What are…

A: Most companies choose one method of accounting over another method on the basis of the accounting…

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: The purpose of providing for depreciation in the statement of comprehensive income is to: O a.…

A: Depreciation refers to a decrease in value of asset over its useful life due to factors such as…

Q: Which one of the following disclousures is required by generally accepted accounting principle? a.…

A: The correct option is B. Balances of major classes of depreciable assets, by nature or function.

Q: Which of the following is not a fundamental issue in accounting for property, plant and equipment?…

A: International Accounting Standards IAS are the accounting standards  issued by International…

Q: If depreciable equipment is sold at a gain,

A: Investing Activity It is related to all activities that include non-current assets. Some of the…

Q: What document shows when fixed assets are fully depreciated?

A: Depreciation: Depreciation means decrease in the value of tangible asset. Depreciation is a…

Q: Is it necessary for a business to use the same method of computing depreciation for all classes of…

A: Every fixed asset like plant, machinery, equipment etc wears off over the period of time with use.…

Q: Under the historical accounting system, depreciation is calculated on the original cost of fixed…

A: The question is multiple choice question. Required  Choose the Correct Option.

Q: When an intangible asset is acquired by an exchange of assets, which of the following measures will…

A: Intangible assets are those assets which we can not see or touch. These assets can only be felt.

Q: Why does an intra-entity sale of a depreciable asset (such as equipment or a building) require…

A: Intra-entity sale of a depreciable asset: The intra-entity sale of a depreciable asset requires…

Q: Describe the two categories of accounting depreciation?

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

Q: n general, Based on which criteria companies choose the depreciation methods for their depreciable…

A: Following are the criteria that a company choose to depreciate the assets: 1. Accelerated…

Q: Under IFRS, when a company chooses the revaluation model as its accounting policy for measuring…

A: As per International Financial Reporting Standards (IFRS), the company values the property, plant…

Q: What factors must be known or estimated in order to compute depreciation expense?

A: Definition: Depreciation: Depreciation is a decrease in the value of the fixed assets over a period…

Q: How does a business decide which depreciation method is best to use?

A: The reduction in the value of an asset due to its continuous usage is referred to as depreciation.…

Q: Why does an intra-entity sale of a depreciable asset (such as equipment or a building) require…

A:

Q: What are the depreciation processes that apply to the most common types of depreciable assets in the…

A: Depreciation is an accounting word that refers to the process of spreading the cost of a tangible or…

Q: What does the word depreciation means to a business or individual and what are the various types of…

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

Q: As a result of the transaction, what is the effect on the profit or loss? what is the cost of the…

A: On the occasion of disposal/exchange/sale of an asset, the net income of the entity is impacted by…

Q: Which of the following statements is correct? O Intangible assets used in the operation of a…

A: An intangible asset is an asset that is not physical in nature. Goodwill , brand recognition and…