Why are the costs of plant/long term assets recovered through depreciation vs. expensed out during the period purchased?

Q: For depreciation purposes, what would be the first cost of the new machine(depreciation base)?

A: Depreciation is the charge or expense to be accounted in the books against an asset of the…

Q: When an item of property, plant, and equipment is disposed of, how is gain or loss on disposal…

A: When an item of property, plant and equipment is disposed of, then gain or loss is determined by…

Q: Which of the following doesn't represent depreciation Select one: O a. It is the process of…

A: Depreciation is an accounting method that allows a company to write off an asset's value over a…

Q: Depreciation is the process of allocating the cost of a plant asset to expense in the accounting…

A: Plant is purchases in the year of its purchase. But the benefit from the plant comes in later years…

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: Explain the terms:  Depreciation, Amortization, and Depletion.

A: Depreciation:  Depreciation is a method that reallocates the cost of tangible assets over its useful…

Q: What is the criterion a company uses to decide whether to include an expenditure in the cost of…

A: The criterion used by a company to include a cost in the cost of an asset is whether it is necessary…

Q: evising an estimate of the useful life or salvage value of a plant asset is referred to as a change…

A: Business Environment is Very Complex Sometimes Assets Life and Salvage Changes and that change is…

Q: What is the purpose of depreciation

A: Depreciation is an accounting system for spreading out the expense of a tangible item over the…

Q: Compare and contrast amortization of intangible assets with depreciation and depletion.

A:

Q: Accounting for plant assets involves cost determination, depreciation, additional expenditures, and…

A: International Financial Reporting Standards (IFRS) They are commonly known as IFRS. It is a set of…

Q: How should intangible assets and property, plant, and equipment (PP&E) be treated when their service…

A: The Answer

Q: Depreciation is the process of allocating the cost of a plant asset to expense in the accounting…

A: Plant means the fixed assets which is used in business for furtherance of business and not held for…

Q: Name the depreciation method that is the most appropriate for assets where a metric can be used to…

A: Unit-of-output depreciation method: It provides the fixed amount of depreciation for each unit of…

Q: What is the cost of the asset being depreciated? Cost of asset %24

A: Under straight line method of depreciation, the value or cost of asset is reduced equally over the…

Q: What is the appropriate depreciation time for a new long-lived asset added to an existing one?…

A: Depreciation refers to the concept of evaluating the decrease in the value of an asset that occurs…

Q: Explain the Changes in Depreciation, Amortization, or Depletion Method.

A: Depreciation:   It refers to the reduction in the value of an asset due to factors like wear and…

Q: What is depreciation? Define useful life, residual value, and depreciable cost.

A: Depreciation is a method of allocation of cost of a fixed asset over its useful life. The value of…

Q: Why are the costs of plant/long term assets recovered through depreciation vs. expensed out during…

A: Depreciation is referred to a decrease in the value of the fixed assets. It is a permanent loss. The…

Q: What is depreciation of property, plant and equipment? What are the factors to consider in computing…

A: Depreciation Depreciation is the term which is used for the business to deduct the amount…

Q: Explain the difference between depreciation, depletion, and amortization.

A: Depreciation - Depreciation is the wear and tear of fixed assets due to use, effluxion of time, and…

Q: How do you figure units-of-production method depreciation?

A: The business entities are required to charge the depreciation expense on their assets so that the…

Q: A gain or loss on disposal of a plant asset is determined by comparin O replacement cost of the…

A: In the business world, the term "book value" was coined to indicate the current value of a…

Q: What is a portion of plant asset cost allocated as expense for the period? What is the difference…

A: Carrying Amount: The carrying amount is the purchase price less impairment and depreciation and is…

Q: The carrying amount of an item of property, plant and equipment that is subsequently accounted for…

A: The answer is option (3.) [ i.e, the historical cost less any accumulated depreciation and any…

Q: Estimate the average total estimated useful life of depreciable property, plant, and equipment. Does…

A: Plant, property and Equipment refers to the tangible asset of the firm. Any tangible asset have a…

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: The unrealized gains and losses from intercompany transactions involving plant assets might be…

A: Depreciable assets are those assets that are eligible for taxation and accounting purposes for…

Q: Explain the depreciation process and benefits of property, plant and equipment?

A: Depreciation on Property, Plant, and Equipment: It is considered as the charge against the profit…

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: How do we calculate straight line depreciation?

A: Depreciation is considered as an expense charge on the value of the Asset. It can be calculated by…

Q: What is meant by the “depreciable cost” of a plant asset?

A: The assets having the life of more than a year can be classified as non-current or plant assets.…

Q: Why was the salvage value used in calculating the depreciation expense?

A: This method also called diminishing balance method or declining balance method where the…

Q: What are the advantages of using the Dupont System to analyze the Return on Assets

A: Dupont analysis is one that helps the firm to analyze the fundamental performance of the firm. It is…

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: What is the process of allocating the cost of a plant asset over its useful life called?

A: Depreciation:Depreciation is the reduction in the value of an asset over its useful life. An asset…

Q: How is gain or loss determined when disposing of plant assets? What situation constitutes a gain?…

A: Disposal of plant assets, may result in gain or loss.

Q: What is the process by which businesses spread the allocation of an intangible asset’s cost over its…

A:

Q: In calculating depreciation, both plant asset cost and useful life are based on estimates.

A: Answer

Q: Depreciation expense is calculated using its cost, estimates of an asset's salvage value, and an…

A: Straight line depreciation formula: Depreciation = (Cost of asset - salvage value) / Life of the…

Q: Why are the cost of plant/long term assets recovered through depreciation vs. expensed out during…

A: Answer : The fixed assets are long-run assets. they assist within the production of goods and…