What is the effective life of an asset?   a. The total period of ownership of the asset, including when it is not installed and ready for use..   b. The period prior to the asset being abandoned or scrapped.   c. The period that the asset can be used for income-producing purposes.   d. All of the above.

Q: The cost of the plant assets consists of Select one: O a. All expenditures necessary to sell an…

A: A resource which can be controlled by an entity for future economic benefit Is called an asset.

Q: Which of the following is not a requirement for an asset to be depreciable?a. It must have a life…

A: Depreciation: A gradual reduction in the value of any asset or a normal wear and tear of the asset…

Q: Estimates of an asset's salvage value and usable life are used to determine depreciation costs. Is…

A: Different methods of depreciation are based on the useful life of the asset. However, one of the…

Q: Which is not an essential characteristic of property, plant, and equipment? a. These are tangible…

A: The balance sheet is one of the financial statements of the business, which tells about the…

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: Which of the following depreciation methods will result in the most depreciation expense over the…

A: Depreciation is method to allocate the cost of the Assets over its useful life

Q: 1. When an item of asset is transferred to and from the classification investment property, carried…

A: Hi student Since there are multiple questions, we will answer only first question. If you want…

Q: Why do we need to depreciate our property, plant, and equipment? (Discuss also the treatment of…

A: Depreciation can be referred to as loss in the value of a non-current asset which arises due to its…

Q: Under the cost model, subsequent to initial recognition as an asset, an item of property, plant, and…

A: Cost model says that all property, plant and equipment of the business should be recognised at cost…

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: TRUE OR FALSE? Once decided by management as an asset held for sale, management can never change…

A: An entity should classify an asset held for sale category when the carrying amount of an asset will…

Q: Which of the following is correct when recording the disposal of equipment for a gain? Group of…

A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…

Q: The value of "Property, Plant, & Equipment, net" reported on the balance sheet represents: A) The…

A: Fixed assets are an unavoidable component of every business organization. These assets are useful in…

Q: The period of time during which interest must be capitalized ends when The asset is abandoned, sold…

A: As per IFRS on Borrowing Costs, the capitalization of interest ceases when the activities necessary…

Q: Tangible assets that are arrached to natural resources are depreciated over a. The life of the…

A: when tangible assets are attached to natural resources -  tangible assets are depreciated as follows…

Q: An estimate of how an asset will be used up over its useful life is known as what?   a.…

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

Q: Which of the following characteristics is not common to both tangible and intangible assets? a.…

A: Tangible assets refers to the assets which have physical form while intangible assets lack physical…

Q: How long does an asset remain the most useful to the company? What do statutes and accounting rules…

A: Financial Accounting:   It refers to the process of recording the financial transactions of the…

Q: Which one of the following items is not a consideration when recording periodic depreciation expense…

A: Depreciation is the reduction in value of asset over the period of time. It is due to the normal…

Q: In computing depreciation, salvage value is which of the following? subtracted from accumulated…

A: Definition: Salvage value: Projected resale value of an asset, at the time of useful life. It is…

Q: A) What is residual value? Support your answer with an example ( word count 100)

A: Lets understand the basic. When person purchase the asset they expected that after the useful life…

Q: All of the following factors are considered in determining the useful life of an asset except:…

A: The question is related to Depreciation Accounting. The factors considered for depreciation are as…

Q: If a business changes the estimated useful life or estimated residual value of a plant asset, what…

A:

Q: The book value of a plant asset is the difference between the   Question 20 options:   replacement…

A: According to the IFRS - property, plant & equipment, Non-current asset is shown as net of…

Q: Which of the following are criteria for determining whether to record an asset as a fixed asset?…

A: Fixed asset is defined as anything which is utilized for more than single accounting period and…

Q: What is book value (or net book value) of plant and equipment and on which financial statement is it…

A: Book value means the value at which it is shown in financial statements.

Q: The terms depreciation, depletion, and amortization all refer to the process of allocating the cost…

A: Depreciation: It refers to the reduction in the monetary value of fixed tangible assets over its…

Q: It is the initial cost of acquiring an asset, plus sales tax, transportation and normal costs of…

A: Cost of the asset is the cost which has been paid by the company in order to buy the asset and on…

Q: A gain or loss on the sale of a plant asset is determined           by comparing the:       A.…

A: Solution:- A gain or loss on the sale of a plant asset is determined as follows under:-

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: Historical cost is the basis advocated for recording the acquisition of property, plant, and…

A: Historical cost principle: This is an accounting principle which states that the actual cost paid in…

Q: I. IAS 16 Property, plant and equipment requires entities to disclose the purchase date of each…

A: IAS 16 Property, plant, and equipment details the accounting treatment of most types of property,…

Q: Which of the following statements relating to the Accumulated Depreciation account is correct?…

A: Accumulated depreciation account is cumulative depreciation of an asset. Its not an expense…

Q: A gain or loss on disposal of a plant asset is determined by comparing the O a) book value of the…

A: Book Value of the asset refers to the current value of the asset computed by deducting the…

Q: TRUE OR FALSE? An item of property plant and equipment can be asset held for sale.

A: The assets of the business are classified as current assets, fixed assets, tangible assets or…

Q: The difference between the purchase cost of an asset and its value at the end of the life is known…

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

Q: treatment of depreciation

A: Depreciation is the expense charged to account the losses arising due to wear and tear of fixed…

Q: According to GAAP, interest cost incurred to finance construction of an asset must be capitalized in…

A: As per US GAAP on Capitalised Interest, interest costs that are directly attributable to the…

Q: Which one of the following items is not a consideration when recording periodic depreciation expense…

A: Depreciation is a method of reducing the value of an asset arising from use, efflux of time or…

Q: Choose the correct. Under IFRS, when an entity chooses the revaluation model as its accounting…

A: When an entity chooses the revaluation model as its accounting policy for measuring property, plant,…

Q: The accrual basis of accounting requires matching of costs to revenues.

A: Meaning Property, plant, and equipment are long-term assets vital to business operations and not…

Q: Normally, depreciation should not be recognized on plant assets during their construction period.…

A: The depreciation expense is charged on fixed assets  as reduction in value of fixed assets with the…

Q: Which of the following must be true in order to use the units-of-production method of depreciation?…

A: All fixed assets loses their value over the period of time. Depreciation is recorded in books of…

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…

Q: Which of the following factors is NOT considered in determining the useful life of an intangible…

A: Intangible assets are assets that can not be seen or touched. Their effect can only be felt like…