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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

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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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