Connect Access Card for Principles of Auditing & Other Assurance Services

21st Edition

ISBN: 9781260299366

Author: Ray Whittington, Kurt Pany

Publisher: McGraw-Hill Education

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Depreciation Methods

The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating exp…

Depreciation Accounting

In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset…

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Textbook Question

Chapter 13, Problem 32KOQ

Which of the following is not an overall test of the annual provision for depreciation expense?

(1) Compare rates used in the current year with those used in prior years.
(2) Test computation of depreciation provisions for a representative number of units.
(3) Test deductions from accumulated depreciation for assets purchased during the year.
(4) Perform analytical procedures.

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Chapter 13, Problem 32JOQ

Chapter 13, Problem 32LOQ

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If a depreciable property is revalued at the middle of the current year, how is the depreciation expense for the year determined when the entity has a calendar year-end? a.Depreciation for the first half of the year is based on cost and for the second half on revalued amount. b.Depreciation for the year is based on the average of the depreciation based on cost and on revalued amount. c.Depreciation for the entire year is based on revalued amount. d.Depreciation for the entire year is based on cost.

Which of the following statements is true for real rental property that has been depreciated using the mid-month convention in the year of disposition? (a) The depreciation in the year of disposition will be the same as the depreciation in a regular year. (b) The deductible amount will be half the depreciation determined for the full year. (c) The deductible amount will be determined by the month in which the asset is disposed. (d) Using information from the MACRS percentage tables, the calculation is made based on a short tax year.

A change in depreciation method is to be accounted for in the current year and future years going forward True or False

Chapter 13 Solutions

Connect Access Card for Principles of Auditing & Other Assurance Services

Ch. 13 - Prob. 1RQ Ch. 13 - K-J Corporation has current assets of 5 million...Ch. 13 - Prob. 3RQ Ch. 13 - Prob. 4RQ Ch. 13 - Explain the use of a system of authorizations for...Ch. 13 - Moultrie Company discovered recently that a number...Ch. 13 - Does a failure to record the retirement of...Ch. 13 - Prob. 8RQ Ch. 13 - Prob. 9RQ Ch. 13 - Prob. 10RQ

Ch. 13 - Prob. 11RQ Ch. 13 - Prob. 12RQ Ch. 13 - Prob. 13RQ Ch. 13 - Prob. 14RQ Ch. 13 - Prob. 15RQ Ch. 13 - Gibson Manufacturing Company acquired new factory...Ch. 13 - Prob. 17RQ Ch. 13 - Do the auditors question the service lives adopted...Ch. 13 - Prob. 19RQ Ch. 13 - Explain how the existence of lease agreements may...Ch. 13 - Prob. 21RQ Ch. 13 - Prob. 22QRA Ch. 13 - Prob. 23QRA Ch. 13 - Gruen Corporation is a large diversified company...Ch. 13 - Prob. 25QRA Ch. 13 - Prob. 26QRA Ch. 13 - Prob. 27QRA Ch. 13 - Prob. 28QRA Ch. 13 - Prob. 29QRA Ch. 13 - Prob. 30QRA Ch. 13 - Prob. 31QRA Ch. 13 - To assure accountability for fixed-asset...Ch. 13 - Prob. 32BOQ Ch. 13 - Which of the following is an internal control...Ch. 13 - Which of the following accounts should be reviewed...Ch. 13 - Prob. 32EOQ Ch. 13 - Prob. 32FOQ Ch. 13 - Which of the following statements is not typical...Ch. 13 - Prob. 32HOQ Ch. 13 - Prob. 32IOQ Ch. 13 - An effective procedure for identifying unrecorded...Ch. 13 - Which of the following is not an overall test of...Ch. 13 - Prob. 32LOQ Ch. 13 - Prob. 33OQ Ch. 13 - Analysis of which account is least likely to...Ch. 13 - Prob. 34BOQ Ch. 13 - Prob. 34COQ Ch. 13 - Prob. 34DOQ Ch. 13 - A search for overstated property, plant, and...Ch. 13 - The following are typical questions that might...Ch. 13 - Prob. 36P Ch. 13 - Prob. 37P Ch. 13 - Chem-Lite, Inc., maintains its accounts on the...Ch. 13 - Prob. 39P Ch. 13 - You are reviewing the property, plant, and...

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Solution Summary: The author explains that the auditor can use the following procedures to test the annual provision for depreciation expense.

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Chapter 13 Solutions