1. Depreciation is referring to the allocation of the depreciable amount over its estimated useful life. TRUE/FALSE 2. Recording depreciation on non-current asset affects the statement of financial position and statement of profit or loss. TRUE/FALSE 3. In calculating depreciation, both non-current asset cost and useful life are based on estimates. TRUE/FALSE 4. Under reducing balance method, the depreciation rate used each year remains constant. TRUE/FALSE 5. The book value of non-current asset is calculated as cost of the assets minus accumulated depreciation. TRUE/FALSE 6. Estimated value of an asset at the end of its useful life is known as “salvage value”. TRUE/FALSE
1. Depreciation is referring to the allocation of the depreciable amount over its estimated useful life. TRUE/FALSE 2. Recording depreciation on non-current asset affects the statement of financial position and statement of profit or loss. TRUE/FALSE 3. In calculating depreciation, both non-current asset cost and useful life are based on estimates. TRUE/FALSE 4. Under reducing balance method, the depreciation rate used each year remains constant. TRUE/FALSE 5. The book value of non-current asset is calculated as cost of the assets minus accumulated depreciation. TRUE/FALSE 6. Estimated value of an asset at the end of its useful life is known as “salvage value”. TRUE/FALSE
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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Question
1. Depreciation is referring to the allocation of the depreciable amount over its estimated useful life.
TRUE/FALSE
2. Recording depreciation on non-current asset affects the statement of financial position and statement of profit or loss.
TRUE/FALSE
3. In calculating depreciation, both non-current asset cost and useful life are based on estimates.
TRUE/FALSE
4. Under reducing balance method , the depreciation rate used each year remains constant.
TRUE/FALSE
5. The book value of non-current asset is calculated as cost of the assets minus accumulated depreciation .
TRUE/FALSE
6. Estimated value of an asset at the end of its useful life is known as “salvage value”.
TRUE/FALSE
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