1. This arises when the asset is no longer useful to the firm because of an increase in the volume of operations. 2.This occurs when an asset wears out from long use and is discarded or sold or junked3.This includes expansion, enlargement or extension of an old asset ObsolescenceDepreciationDeclining Balance MethodDepreciable costUseful lifeInterest expenseScrap valueInadequacy Revaluation modelReplacementsTrade discountsVariable methodIdle AssetsQualifying AssetBorrowing costRetirementCash discountSaleCost modelAdditions

Assets means the resources which is owned by business. Liability means the amount which is to be…

1. This arises when the asset is no longer useful to the firm because of an increase in the volume of operations. 2.This occurs when an asset wears out from long use and is discarded or sold or junked 3.This includes expansion, enlargement or extension of an old asset

1. This arises when the asset is no longer useful to the firm because of an increase in the volume of operations. 2.This occurs when an asset wears out from long use and is discarded or sold or junked 3.This includes expansion, enlargement or extension of an old asset

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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Question

1. This arises when the asset is no longer useful to the firm because of an increase in the volume of operations.

2.This occurs when an asset wears out from long use and is discarded or sold or junked

3.This includes expansion, enlargement or extension of an old asset

Obsolescence
Depreciation
Declining Balance Method
Depreciable cost
Useful life
Interest expense
Scrap value
Inadequacy

Revaluation model
Replacements
Trade discounts
Variable method
Idle Assets
Qualifying Asset
Borrowing cost
Retirement
Cash discount
Sale
Cost model
Additions

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