Describe an internal control that would prevent the charging of depreciation expense to the maintenance department for a sweeper that is now located in and used by the engineering department.

Q: If

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Q: The acquisition costs of property, plant and equipment do not include: a. The ordinary and necessary…

A: When an organization acquired property, plant, and equipment, etc. for the business purpose. It…

Q: What would be the classification of depreciation of office building as to (1) variability, (2)…

A: Variable Cost: Cost which changes with change in production. It increases with the increase in…

Q: Who is to inspect work done by subcontractors -

A: A general contractor is the person who is appointed by the owner. He is responsible for carrying…

Q: Depreciation of a factory equipment is treated as ____, while deprecation of an automobile used for…

A: Depreciation of a factory equipment is treated as ____, while deprecation of an automobile used for…

Q: Understand accounting issues related to acquiring and valuing plant assets.

A: Following are the accounting issues that are related to acquiring and valuing plant assets: a)  Cash…

Q: Explain the accounting treatment required when a change is made to the estimated service life of a…

A: When a change is made to the estimated service life of a machine, then the accounting treatment for…

Q: With reference to IAS 16 (Property, Plant and Equipment), discuss the differences between “the cost…

A: IAS 16 relates to the accounting for property, plant, and equipment unless another standard requires…

Q: What would be the classification of depreciation of office building as to (1) variability, (2)…

A: Fixed costs: Fixed costs are those costs that do not change with the production process or with the…

Q: Explain why an organization should buy or lease when purchasing equipment.

A: Leasing involves the two parties, a lessee and lessor ,Whereas purchasing involves a buyer and…

Q: Classify each of the following costs as either a research expense or as an intangible asset.…

A: In the given question we have asked to classify the above cost which are as below.

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: Explain the differences between depreciation expense and impairment loss of property, plant and…

A: The difference between Depreciation and impairment is as follows: Depreciation Impairment It is…

Q: If a company were filing a claim for compensation with an insurance company for manufacturi…

A: Replacement cost: Replacement cost means the cost which the firm would have to incur to replace or…

Q: Identify which of the following is classified as a revenue expenditure a. Installation expense paid…

A: Expenditure can be divided into capital and revenue expenditure. The costs and expenses incurred in…

Q: For efficient management of materials, all these steps are typically taken by the storekeeper O…

A: Inventory management revolves around the process of sourcing and maintaining appropriate inventory…

Q: In salvage analysis in corrective maintenance, the decision of replacing an equipment with a new one…

A: Corrective maintenance is defined as the task, which used to correct the problem with the returns as…

Q: (d)  State the journal entries necessary to record the assignment of direct materials, direct…

A: PLEASE LIKE THE ANSWER, YOUR RESPONSE MATTERS  d) Journal Entries  Particulars  Debit…

Q: The following are capital expenditures EXCEPT the decoration of office space installation of an…

A: Capital expenditure indicates the cost incurred by the company on their fixed assets which provides…

Q: According to IAS 38 Intangible Assets, which of the following types of research and development…

A: According to IAS 38 Intangible Assets, which of the following types of research and development…

Q: How does the materials requisition help safeguard a company’s assets?

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Q: Which of the following is not a typical internal control over long-lived assets?   a.  Periodically…

A: Long-lived assets are those assets whose life is more than a year. Means those assets are in the…

Q: Which transaction is not processed in the fixed asset system? a. purchase of building b. repair of…

A: Fixed Asset:  The asset used by company for more than one year is known as fixed asset. Fixed asset…

Q: On your own words, describe the methods that companies can implement to depreciate plant assets.

A: The methods to depreciate the plant assets are as follows, Straight Line Depreciation: This is also…

Q: Verifying repair costs will be handled differently from auditing depreciation costs. What's the…

A: Answer: Repaid costs are the costs that pertains to the maintenance of the assets Depreciation costs…

Q: Identify the material loss, which may be re-cycled for production process. Select one: Defectives…

A: defectives are those units that did not meet the expected quality of production. wastage has no…

Q: Identify which of the following is classified as a revenue expenditure a. Cost of purchase of…

A: Capital expenditure means the cost incurred for the item which will be used in many year to come .…

Q: Provisions shall be recognized for all of the following, except

A: In Accounting terminology, Provision is something which represents a present liability of an entity…

Q: Differential analysis can aid management in making decisions on a variety of alternatives, including…

A:

Q: (d) On what basis should management select from these two methods to depreciate the machine? Justify…

A: The management should opt for reducing balance method of depreciation for the above scenario: This…

Q: Remodeling and rehabilitation: O Can usually be undertaken by the property manager without…

A: Rehabilitants and remodeling both are a different thing. Rehabilitations consists of renovating…

Q: Identify events that might lead to disposal of a plant asset.

A: An asset is a resource owned by an enterprise and which can generate values in the future. Assets…

Q: Explain the accounting treatment required when a change is made to the estimated service life of…

A: .

Q: The controller of Excello Manufacturing, Inc., wants to use analytical procedures toidentify the…

A: Equipment is purchased incurring a number of costs. When equipment is manufactured there are…

Q: 1.Several expenditures are listed below: Yes a. Landscaping b. Compensation for injury to…

A: Property, plant and equipment shall initially be recorded at cost. Cost includes all costs necessary…

Q: According to PAS 38, which of the following may be recognized as cost of intangible asset? a.…

A: Requirement is to find solutions to some MCQs

Q: Madi Corporation has a single facility that it uses for manufacturing, sales, and administrative…

A: The business structure under accounting which shows different types of costs incurred by the…

Q: The fixed asset acquisition procedures for Turner Brothers, Inc., are as follows:Supervisors in the…

A:

Q: If a company constructs a laboratory building to be used as a research and development facility, the…

A: Introduction:- All costs pertaining to the construction or purchase of new buildings should be…

Q: Explain the concept of cost allocation as it pertains to property, plant, and equipment and…

A: Property, Plant & Equipment (PPE) includes the following assets namely: Land Plant and Building…

Q: Indicate which principles are violated: A food company ordered a machine needed in the assembly line…

A: While making the accounting entries in the books, the accounting principles must be kept in mind and…

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: a. Journalize the contingent liabilities associated with the hazardous materials spill. Use the…

A: Particulars…

Q: What accounting treatment is normally given to the following items in accounting for plant assets?…

A: Asset capitalization: Asset capitalization can be defined as the expense or additions/improvements…

Q: When a company constructs a building, the cost of the building includes materials and labor, design…

A: For the purpose of recording the cost of building in the books of accounts all the expenditures…

Q: Cost to lease (rent) railroad cars Cost of track and bed (ballast) replacement Diesel fuel costs…

A: With the following list of cost. The cost object is train so any cost directly related to train…