Answered: Which of the following depreciation…

Which of the following depreciation methods initially ignores salvage value in its calculation? a.Declining-balance b.Sum-of-the-years'-digits

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 8MC: An accelerated depreciation method that takes more expense in the first few years of the assets life...

See similar textbooks

Related questions

Q: The transfer to expense of the cost of intangible assets attributed to the passage of time or…

A: Introduction:- Assets are mainly classified into two types as follows under:- Tangible assets…

Q: The method of depreciation which is also known as Accelerated depreciation method is a. Diminishing…

A: Depreciation expense is the reduction in the value of assets due to the wear and tear on that asset.…

Q: Salvage value is not considered directly in the determination of the deprecation amount with the…

A: Salvage value is also called the residual value. Salvage value is the estimated selling price of the…

Q: The term that applies when an intangible asset is expensed over time rather than fully expensed at…

A: Any tangible fixed asset purchased has a fixed life throughout which it has to be used. Over the…

Q: What is the correct process for determining depreciation expense for partial periods? A: The…

A: Lets understand the basics. Depreciation is a reduction in value of asset due to wear and tear,…

Q: Which combination of depreciation methods and useful lives is most conservative in the year a…

A: According to the conservative approach, the depreciation expense will be reported higher and profit…

Q: Complete using the declining-balance method of depreciation. Round to the nearest hundredth of a…

A: (1) Straight Line Method of Depreciation : Depreciation Rate = 1Useful Life (years)X 100 (2)…

Q: Contrast the effects of the straight-line, declining-balance, and activity-based methods on annual…

Q: The depreciation method used shall reflect the pattern in which the asset’s future economic benefits…

A: Depreciation is the method of accounting which assign the cost of the physical asset or the tangible…

Q: What is the systematic periodic transfer of the cost of a fixed asset to an expense account during…

A: It is a measure of the wearing out, consumption or other loss of value of depreciable asset arising…

Q: Which one of the following methods charges depreciation at a rate double to the one used in straight…

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

Q: The cost of an asset that is subject to depreciation is called a.depreciable cost. b.trade-in…

A: Depreciable cost is that portion of cost of asset which can be depreciated. Trade in value relates…

Q: Which depreciation method ignores residual value until the last year of depreciation? Why?

A: Double declining method of depreciation does not consider residual value while calculating…

Q: written down value method is more appropriate than the straight-line method

A: Under written down value method, accelerated depreciation is charged in initial years of useful life…

Q: Detailed Explanation needed. Advantages and Disadvantages of methods of depreciation ( Straight…

A: The efficiency of the assets will reduce over the period. To record this reduction in the…

Q: Please explain double-declining method depreciation. When is this the preferred method to figure…

A: The double-declining balance method is a method to calculate depreciation. Depreciation as per…

Q: Of the following, what information is required to calculate depreciation allowances under…

A: Depreciation is the process of decrease or diminishes the value of an asset. It is an accounting…

Q: According to IAS 16 Property, Plant and Equipment, which, if any, of the following statements about…

A: IAS 16 Property, Plant and Equipment it is an standard and this accounting treatment is totally…

Q: Distinguish between three depreciation methods:Straight-Line Method; Production Method; and…

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

Q: The depreciation method that produces larger depreciation expense during the early years of an…

A: Any depreciation technique that allows for the recording of larger depreciation expenditures in…

Q: A method that ignores residual value in calculating periodic depreciation expenses in the earlier…

A: The value of an asset reduces over the life or as per the usage and the reduced value is known as…

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: Which method of computing depreciation expense results in the amount of depreciation for each year…

A: Unit of Production Method:-This method calculates depreciation for the unit produces in a year…

Q: Which of the following is a false statement about depreciation? It has no impact on cash It…

A: The accelerated method is a method of charging the depreciation in which the higher amount of…

Q: Which of the following depreciation methods most closely approximates the method used to deplete the…

A: Normally Depletion method of depreciation is used for natural resource. Similar to any other…

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: Which of the following items is not a consideration when recording periodic depreciation on plant…

A: In order to record the periodic depreciation on Plant Assets Cost, Salvage value and Estimated…

Q: Explain what complications might arise in trying to compare the results of straight-line…

A: Depreciation is defined as a reduction in the value of an asset that occurs over time as the assets…

Q: When an independent valuation expert advises an entity that the salvage value of its plant and…

A: When an independent valuation expert advises an entity that the salvage value of its plant and…

Q: Which of the following statements is true regarding depreciation methods? a.The use of a declining…

A: Depreciation is a reduction in the value of assets due to the usage of that asset. We can evaluate…

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

A: 1. The correct option is option “D” D. Depreciation Depreciation: Depreciation refers to the…

Q: Which of the following statements about MACRS is false? A. Depreciable assets are assumed to have no…

A: MACRS stands for "Modified Accelerated Cost Recovery System" MACRS is the depreciation method…

Q: 25. In which of the following method of depreciation, the amount of depreciation remains constant?…

A: The depreciation on fixed assets can be calculated using various methods as: Reducing balance…

Q: Which of the following is true regarding special issues in accounting for long-term assets?A. An…

A: Long term assets are those assets in the business which are being held for longer period of time,…

Q: 21 - Which of the following is not a method of depreciation.? A) Normal Depreciation Method B)…

A: Depreciation refers to the amount that is charged on the value of the fixed assets by which the…

Q: According to IAS 16 Property, Plant and Equipment, which, if any, of the following statements about…

A: International Accounting standard (IAS) represents the Property, Plant, and Equipment (PPE). 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: One accelerated depreciation method is called fixed-percentage-of-declining-balance. Explain what is…

Q: Net income is understated if, in the first year, estimated salvage value is excluded from the…

A: Straight line method of depreciation is the most straightforward approach that implies that the…

Q: The write-off of the cost of plant and equipment is called a.amortization. b.depletion.…

A: When the tangible asset are write-off then it is called as depreciation.

Q: haracteristics of Depreciation Methods In each dropdown below is a list of common depreciation…

A: Assets: Assets are the resources of an organization used for the purpose of business operations.…

Q: statement regarding depreciation

A: All the statements given regarding depreciation is correct.

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: a. Under what conditions is the use of the straightline depreciation method most appropriate?b.…

A: a. Explain the condition under which the straight-line depreciation method is the most appropriate…

Concept explainers

Audit Procedures

Audit Procedures are methods and techniques performed by the auditor to determine the quality of financial information of clients, thereby expressing an opinion on true & fair view of financial statements and entity position. They are identified and applied at the planning stage of audit after determining audit objectives, scope, approach, and risk assessment.

Question

Which of the following depreciation methods initially ignores salvage value in its calculation?

a.Declining-balance
b.Sum-of-the-years'-digits
c.Straight-line
d.Units-of-production

Definition Video Definition Accounting method wherein the cost of a tangible asset is spread over the asset's useful life. Depreciation usually denotes how much of the asset's value has been used up and is usually considered an operating expense. Depreciation occurs through normal wear and tear, obsolescence, accidents, etc. Video

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Audit procedures for items of Financial Statement

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

The straight-line method of depreciation allocates the cost of an asset more rapidly than the sum-of-the-years-digits method.
Characteristics of Depreciation Methods Below is a common list of depreciation methods and characteristics related to depreciation. Depreciation Methods a. Straight-line depreciation method b. Declining balance depreciation method c. Units-of-production depreciation method when actual units produced increases over the life of the asset Characteristics 1. Results in depreciation expense that decreases over the life of the asset. 2. Results in depreciation expense that increases over the life of the asset. 3. Allocates the same amount of cost to each period of a depreciable assets life. 4. Calculated by multiplying a constant depreciation rate by depreciable cost. 5. Calculated by applying a constant depreciation rate to the assets book value at the beginning of the period. 6. Results in lowest income taxes in early years of the assets life. 7. Consistent with the matching principle. Required: Match one or more of the depreciation methods with each characteristic.
An accelerated depreciation method that takes more expense in the first few years of the assets life is ________. A. units-of-production depreciation B. double-declining-balance depreciation C. accumulated depreciation D. straight-line depreciation
Which of the following is true regarding special issues in accounting for long-term assets? A. An assets useful life can never be changed. B. An assets salvage value can never be changed. C. Depreciation expense calculations may need to be updated using new and more accurate estimates. D. Asset values are never reduced in value due to physical deterioration.
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
Which of the following represents an event that is less routine when accounting for long-term assets? A. recording an asset purchase B. recording depreciation on an asset C. recording accumulated depreciation for an asset or asset category D. changing the estimated useful life of an asset
Which depreciation method ignores residual value when computing the depreciable base of an asset? a. sum-of-the-year's-digits b. double-declining-balance c. composite depreciation d. group depreciation
Which of the following depreciation methods can NOT depreciate an asset below its salvage value? a.Sum-of-the-years'-digits methodb.Units-of-production methodc.Straight-line methodd.All of these cannot depreciate below salvage value
Salvage value is not considered directly in the determination of the deprecation amount with the a.sum-of-the-years'-digits method. b.straight-line method. c.declining-balance method. d.units-of-production method.
Which statement regarding depreciation is incorrect? * Depreciation of noncurrent operating assets is an accounting process for the purpose of allocating asset costs over the periods benefited by use of the assets Service value declines as a function of time rather than use, is the assumption on which straight-line depreciation is based The composite depreciation method does not recognize gain or loss on the retirement of specific assets in the group. The double-declining-balance method ignores salvage value in calculating periodic depreciation expense. none of the above
Which of the following depreciation methods will result in the most depreciation expense over the life of an asset? Select one: a. Double-declining balance method b. All three methods will result in the same amount of depreciation expense. c. Units-of-production method d. Straight-line method e. Cannot be determined from the information given.
Which combination of depreciation methods and useful lives is most conservative in the year a depreciable asset is acquired? C . Declining balance depreciation with a short useful life.