When a fixed asset is sold for less than book value, which one of the following will decrease?

Q: How do you calculate Fixed Asset Turnover? What is the Free Cash Flow Ratio? What is the difference…

A: The answers for the questions on accounting ratios are discussed hereunder : Fixed Assets turn over…

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

A: Assets:   It refers to the economic value of all resources owned by the business at a given point in…

Q: receivables not measured initially at their transaction price are measured initially at a. fair…

A: Financial Asset or Receivables: The financial Asset or Receivables is measured initially at fair…

Q: 1. A company is deciding whether to exchange an old asset for a new asset. Within the context of the…

A: The situation described is the replacement decision for the old asset.  Sunk cost is the cost that…

Q: If the sale price executes at the price you specified, what would be the total loss, excluding…

A: Sales price when executed at the price specified will be equal to the breakeven price.  Break even…

Q: What entry is made when selling a fixed asset?

A: Following entry is passed when selling the fixed assets:

Q: The adjusted basis of an asset is the original cost (or basis) plus capital recoveries less capital…

A: Adjusted basis: The amount of original cost, plus additional investments (capital expenditure) and…

Q: Explain what effect will an upward asset revaluation have on subsequent periods’ profits

A: The revaluation of assets means the change in the value of assets over a period of time this made…

Q: The book value of an asset is equal to the     asset's cost less accumulated depreciation.…

A: Book value means the value as per books of accounts. The assets are generally recorded at cost less…

Q: Value-in-use is O a. The discounted present value of future cash flows arising from use of the asset…

A: Value-in-use:-It is future cash inflows and outflows which arise from the continuous use of assets…

Q: It is the expected selling price of a property when the asset can no longer be used by its owner.…

A: Purchase value of assets is cost of assets purchase plus expenses incurred at the time purchase.

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

A: The book value of the asset is the cost of the asset less accumulated depreciation.

Q: Which of the following has the right to sell an asset at a predetermined price?

A: A put option is an instrument which provides its holder an option to sell an underlying asset on a…

Q: The book value of an asset is equal to the: a. asset's market value less its historical cost b.…

A: Book value is the net value of the assets that appears in balance sheet. it is calculated by…

Q: the Capital Asset Pricing M

A: Explanation : In simple words, Capital asset pricing model for valuing the cost of capital contains…

Q: True or false If you sell an asset for more than its salvage value you can record a loss for the…

A: Depreciation means the loss in value of assets because of usage of assets , passage of time or…

Q: Inflation affects the historical cost of an asset over time. TRUE OR FALSE.

A: Concept of historical cost of an Assets Historical cost of an assets refers to the cost at which an…

Q: Profit on sale of fixed assets arises when: Sale price is more than the original purchase value of…

A: Profit on the sale of fixed assets arises when the book value of the asset is less than the selling…

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: Which asset never depreciates in value?

A: Depreciation expense: Depreciation expense is the reduction in a particular asset due to its use or…

Q: When market value of an asset is higher than book value, depreciation is not charged. A) True B)…

A: Meaning of depression. Depreciation is a reduction in the value of asset due to wear and tear,…

Q: How does the Leasing reduce the upfront cash needed to use an asset?

A:

Q: When identifying undervalued and overvalued assets, which of the following statements is least…

A: While identifying whether the assets are undervalued or over valued, the required rate of return as…

Q: Which of the following payback methods assumes that the asset acquired may not last its estimated…

A: Capital Budgeting technique: It is the process  by which  value of a potential investment project is…

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: Biological assets are measured as follows Initial…

A: The biological assets are the assets that include animals and plants.

Q: Which of the following alternative assumes that accessibility of capital is infinite? a. Equivalent…

A: The equivalent uniform annual cost can be defined as a capital budgeting concept used to identify…

Q: (a)  When would the disposal of a long-term asset result in no gain or loss? (b)  When would the…

A: Long-term assets can be defined as those assets which are held by an investor for a period of more…

Q: Where non-current assets are held for sale, they are required to be measured using: the…

A: Non-current assets are held for sale - Non Current Assets are part of the assets in the balance…

Q: What is the current market view on GBP/USD? (Will it appreciate and which depreciate? and why?)

A: The exchange rate are dependent on the the market factors and other factors which are point of…

Q: Which of the following is correct about "Cost", "Expense", and "Loss" concepts? Select one: a.…

A: Income statement is one of the significant financial statements and the two components of this…

Q: Will the carrying value of a long-term asset be equivalent to its market value under typical…

A: Here is the Answer

Q: What do you understand by Capital cost Allowances (CCA)? What is accelerated CCA? Also, can you…

A: Capital cost allowance   A capital cost allowance is a form of depreciation of a capital asset used…

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: right of use asset

A: Correct Answer :- C Sale price

Q: Which of the following is not true in regard to selling fixed assets? a.If the selling price is more…

A: The journal entry for sale of fixed asset Cash A/C dr (sale amount) Loss on sale (if bookvalue >…

Q: If a newly acquired asset is ‘held for sale’, the asset or disposal group will be measured at: A.…

A: Held for sale assets are those assets that are acquired for the purpose of sale in short period of…

Q: Under normal circumstances, will the carrying value of a long-term asset be equal to its market…

A: Assets are recorded at historical figures.

Q: How is the fixed asset turnover ratio computed? Explainits meaning.

A: Ratio analysis is a method of measuring the financial position of the organization with different…

Q: According to the historical cost principle, assets are always carried at their current market value.…

A: The accounting principles are required so as to record the accounting information in the accounting…