M11-5 The composite depreciation method a. Is applied to a group of homogeneous assets b. Is an accelerated method of depreciation c. Does not recognize gain or loss on the retirement of single assets in the group d. Excludes residual value from the base of the depreciation calculation

M11-5 The composite depreciation method a. Is applied to a group of homogeneous assets b. Is an accelerated method of depreciation c. Does not recognize gain or loss on the retirement of single assets in the group d. Excludes residual value from the base of the depreciation calculation

Name: M11-5 The composite depreciation method a. Is applied to a group
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Description: M11-5 The composite depreciation method a. Is applied to a group of homogeneous assets b. Is an accelerated method of depreciation c. Does not recognize gain or loss on the retirement of single assets in the group d. Excludes residual

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter7: Fixed Assets, Natural Resources, And Intangible Assets

Section: Chapter Questions

Problem 7.2.2MBA

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According to IAS 16 Property, Plant and Equipment, which, if any, of the following statements about depreciation are correct? The main purpose of depreciation is to reflect the fall in value of an asset over its useful life When an asset is revalued, subsequent depreciation relating to the amount of the revaluation should be debited to the revaluation surplus rather than to the income statement The provision for depreciation ensures that there are funds available to replace an asset when this becomes necessary, though in times of inflation, additional amounts may need to be set aside A change in depreciation method constitutes a change in accounting policy and must be accounted for as such A (1) and (4) B (2) and (3) C (4) only D None of the statements is correct
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