When an asset is sold, the accumulated depreciation account for the asset must be closed off to the asset realisation account.    A. True  B. False

Q: Which of the following statements is not correct?   Multiple Choice   The cost less the salvage…

A: Expenses: Expenses are costs incurred for the operations of a business. The costs incurred for…

Q: An adjustment, to the carrying amount of a non-current asset that ceases to be classified as ‘held…

A: If the noncurrent asset is classified as held for sale, it would be recorded in the income from…

Q: TRUE OR FALSE? A piece of machinery can be a noncurrent asset held for sale.

A: Assets held-for-sale are regarded as the non-current assets, which any firm plans to sell in the…

Q: An asset is impaired if: O a. The amount to be recovered through use (or sale) of the asset exceeds…

A:

Q: 1.) If a newly acquired asset is ‘held for sale’, the asset or disposal group will be measured at:…

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

Q: The qualification of an asset to be classified as held for sale after reporting period but before…

A: Solution: The qualification of an asset to be classified as held for sale after reporting period but…

Q: Statement 1: An impairment loss that relates to an asset that has been revalued upwards should be…

A: answer is option a) Only statement 1 is correct

Q: key characteristic for theclassification of an asset as ‘held for sale’ is that the carrying amount…

A: As per IFRS 5 a non-current asset or disposal group is classified as held for sale if its carrying…

Q: It is the gradual diminution of the useful value of tangible property resulting from wear and tear…

A: (i) Depreciation: Depreciation is the gradual decrease in the value of the asset due to wear and…

Q: The process of transferring the cost of an asset to an expense account over time is called O A)…

A: Property, plant, and equipment:   These assets are long lived economic resources which are owned by…

Q: Which of the following statements related to long-lived assets is true?     Depreciation is…

A: Depreciation : Depreciation is an accounting method of allocating the cost of a tangible or…

Q: The sale of a depreciable asset resulting in a loss indicates that the proceeds from the sale are…

A: The asset is regarded as the investment of money by the investor in something which makes a profit…

Q: As the usefulness of the property and equipment asset account of an entity expires, O A liability is…

A: Asset Account Expires: This occurs when a cost is totally consumed or when a benefit is received in…

Q: Which of the following is a valid statement regarding "assets held for sale"? X Depreciation…

A: Assets Held For Sale: These are assets that company plans to sell and are non-current (or…

Q: Statement 1: The cost of an asset, or other amount substituted for cost, less its residual value is…

A: Depreciation: It implies to a reduction or fall in the value of fixed assets as a result of its…

Q: TRUE OR FALSE The principle of historical cost states that acquired assets should be recorded at…

A: Historical Cost:-As per this principle according to the US GAAP, assets should be recorded in the…

Q: Statement 1: The cost of an asset, or other amount substituted for cost, less its residual value is…

A: An asset can only be depreciated up to the level of residual value. When it reaches the residual…

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: Q1 Which of the following statement (s) is (are) true? (i) When no future economic benefits are no…

A: Intangible assets are those assets that lack physical substance and are identifiable and…

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: All of the following are true regarding recovery of impairments for intangible assets except а.…

A: Intangible assets are those assets which lacks physical existence and provide long term benefits to…

Q: Question 1 Which of the following is not correct in relation to the reversal of an impairment loss…

A: Step 1 Impairment of the assets means the downward revaluation of the assets; whenever the carrying…

Q: Select the best answer for the question. 5. Which of the following statements about the Accumulated…

A: Accumulated Depreciation account contains the total depreciation charged on the asset till date. Due…

Q: The depreciation expense is generally estimated based on some assumption such as percentage of sales…

A: Depreciation can be defined as the reduction in the value of the asset over a period of time due to…

Q: Accounting Which statement is false? Accounting for asset retirement obligations (ARO) apply to both…

A: The given question asked about the correctness of the statement.    Assets retirement obligations:…

Q: Which of the following best describes depreciation? A.ccounts for the market value of a physical…

A: Depreciation is an expense which is shown and recorded in the expense side of the income statement.

Q: The book value of an asset is defined as ____________________. a. Estimated fair market value b.…

A: Book Value of an asset is the measure of the historical cost of an asset decreased by the total…

Q: The accounting treatment for depreciation expense in the balance sheet will be: a. Added to the…

A: Solution: Depreciation is charged on non current assets like equipment, building, vehicle etc. It is…

Q: For some of the fixed assets of a business, the balance in Accumulated Depreciation is equal to the…

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

Q: A loss on disposal

A: The loss on disposal arose when the asset is sold for less than the book value of the asset. The…

Q: Which statement about depreciation is false?a. A major objective of depreciation accounting is to…

A: Answer:   Option b.

Q: Record the entry to adjust asset values to fair value.

A: In this problem assets are revalued at a gain.  So the gain i.e difference…

Q: Depreciation expense is:

A: Answer

Q: If the asset is long-lived but not used in the normal operations of the business, it will be…

A: An expense is a cost incurred for operation of business and its benefits does not last long. An…

Q: Which of the following statements about capitalizing costs is correct?A. Capitalizing costs refers…

A: There are two type of costs treatments that are being done on all type of costs being incurred. One…

Q: For financial accounting purposes, depreciation expense represents the decreasein an asset's fair…

A: "Since you have asked multiple questions, we will solve first question for you. If you want any…

Q: In all cases, net property, plant and equipment (PP&E) should be calculated as the gross PP&E less…

A: Solution: Gross PP &E  = Cost of purchase of PPE Accumulated depreciation = Depreciation…

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: A gain on the disposal of an asset indicates that the asset was sold for more than Its fair value.…

A: Lets understand the basics. When there is sale happens of asset then there is profit or loss arise.…

Q: of the VLN, acquisition cost would NOT include: A. Purchase price. B. Transportation cost to get the…

A: operating assets are the assets which are used in the day to day activities of the business. 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: When an item of property, plant and equipment is derecognised, the treatment of any revaluation…

A: When a asset is revalued and if there is any revaluation gain then such revaluation gain should be…

Q: Accumulated depreciation, as used in accounting, represents: O An expense on the income statement.…

A: Depreciation is an outlay which is being recorded in the books due to the fall in the asset's worth.…

Q: Sometimes, for the fixed assets of certain businesses, the balance in Accumulated Depreciation is…

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

Q: Which statement concerning depreciation is false? a.The only property that has a determinable life…

A: Introduction: Depreciation: Decreasing value of fixed assets over its useful life period. Example:…

Q: Which is not an expense? A. costs of goods sold or services rendered B. loss on disposal of a…

A: Expense means the amount which is spent to for business purpose or for running the business. Expense…