Unit 6 Discussion- MT482

Note: Option A is incorrect. Need correct option

In accounting, which statement accurately reflects the Historical Cost Accounting concept and its implications for financial reporting? a ) Historical Cost Accounting records assets at their original purchase price. b) Historical Cost Accounting adjusts asset values based on current market prices. c) Historical Cost Accounting emphasizes future projected values for assets. d) Historical Cost Accounting disregards the original purchase price of assets.

What provides the framework for conducting return on assets (ROA) analysis by incorporating revenues and expenses to generate net profit margin, as well as inclusion of assets to measure asset turnover?

Which of the following is (are) acceptable valuation(s) for reporting of assets on the balance sheet? 1.   inventories at lower of cost or net realizable value. 2.   accounts receivable at net realizable value. 3.   plant and equipment at cost 4.   investments at acquisition cost   Select one: 1 and 4 1 and 3 1 and 2 2 and 4

Which of the following statements relating to the Accumulated Depreciation account is correct? Select one: O a. The normal balance of the Accumulated Depreciation account is a debit balance. O b. The Accumulated Depreciation account allows the accountant to determine the precise market value of the related asset. O c. The Accumulated Depreciation account is classified as a Liability account. O d. The balance in Accumulated Depreciation account reflects the portion of the historical cost of the asset that has become expense since the item was purchased.

Record the entry to adjust asset values to fair value. Record the entry to reduce additional paid in capital balance to correct figure, to close out gain account, and to eliminate deficit. How do I do this? What part of this is the adjust asset value and what part is the deficit entry

Analyze the impact of depreciation methods (straight-line, declining balance, and units of production) on financial statements. Discuss how each method affects asset valuation, expense recognition, and profitability. Depreciation methods impact the financial statements by affecting the valuation of assets and the recognition of expenses. Explain the straight-line method, where depreciation expense is evenly spread over the asset's useful life. Describe the declining balance method, which accelerates depreciation in the early years of the asset's life. Discuss the units of production method, which ties depreciation to actual usage or output. Analyze how each method influences asset valuation on the balance sheet, expense recognition on the income statement, and overall profitability.

As generally used in accounting, what is depreciation? a. It is an accounting process which systematically allocates long-lived assets cost to accounting periodsb. It applies only to long-term lived intangible assetsc. It is a process of asset valuationd. It is used to indicate a decline in market value of a long-term lived asset

Which of the following most accurately reflects the concept of depreciation as used in accounting? The proccess of charging the decline in value of an economic resource to income in the period in which the benefit occured. O The proccess of allocating the cost of tangible assets to expense in a systematic and rational manner to those periods expected to benefit from the use of the asset. OA method of allocating asset cost to an expense account in a manner which closely matches the physical deterioration of the tangible asset involved. O An accounting concept that allocates the portion of an asset used up during the year to the contra asset account for the purpose of properly recording fair market value of tangible assets.

When using the revaluation model of accounting for PP&E assets (asset-adjustment or elimination method), a new depreciation rate must be calculated. depreciation continues to be charged in the original pattern. the related Accumulated Depreciation account is closed to OCI. the difference between fair value and book value is always debited to Revaluation Surplus (OCI).

What is correct answer for this financial accounting mcq?

Depreciation expense under the invenroty system is a. Based on cost minus residual value b. Basically a FIFO approach to depreciable asset accounting c. The result of applying a depreciation rate to the original cost d. A measure of the change in the value of the depreciable asset

Losses on discarding fixed assets are _____. a. opportunity costs b. nonoperating items c. capital expenditures d. accumulated depreciation

As prepaid assets are used to generate revenue, an adjustment is necessary to reduce the previously recorded prepaid asset and reduce the related expense. True or False?

which metric is used as the profitability metric and explain what it evaluate?  There are two types of accounts that require adjustments, (1) explain what they are and (2) provide an example for each.  Explain the following terms: (1) Depreciation, (2) accumulated depreciation, (3) book value, (4) fixed asset, (5) intangible asset.  Briefly explain why land does not depreciate.

For accounting​ purposes, depreciation refers to the process of​ ________.         A. estimating an​ asset's current market value   B. allocating the cost of a plant asset to expense over its useful life   C. recording the decline in the market value of an asset to its book value   D. determining the selling price of an asset

In accounting, depreciation is a method of allocating the cost of a(n): (a) Long-term asset (b) Revenue (c) Current liability (d) Short-term investment ?