11 _______________is the reduction in the value of the fixed assets because of their use, wear and tear, efflux of time; depletion etc. a. None of the given options b. Amortization c. Depreciation d. Depletion Clear my choice

11 _______________is the reduction in the value of the fixed assets because of their use, wear and tear, efflux of time; depletion etc. a. None of the given options b. Amortization c. Depreciation d. Depletion Clear my choice

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter13: Capital Budgeting: Estimating Cash Flows And Analyzing Risk

Section: Chapter Questions

Problem 2MC

See similar textbooks

Related questions

Q: 11. What is the process by which the cost of a fixed asset over its estimated useful life is…

A: Depreciation is the decline in the usefulness, functionality, and/or value of the asset and the…

Q: Net purchase price of an asset plus all reasonable and necessary expenditures to get it in place and…

A: Depreciation expense: Depreciation expense is the reduction in a particular asset due to its use or…

Q: 4. The most appropriate definition of depreciation is: A. A means of determining the decrease in the…

A: Introduction:- The following methods used to calculate depreciation as follows under:- Straight…

Q: Impairment of a long-term operating asset occurs when ________. Group of answer choices an asset or…

A: The objective of the question is to identify the correct scenario under which the impairment of a…

Q: assets are amortized a. using straight-line method applied to the shorter of an intangible asset's…

A: Intangible Assets - It is an assets which are not in physical in nature. for example patent,…

Q: Depreciation is: Oa. the loss in market value of an asset. Ob. the allocation of a long-term asset's…

A: Depreciation is an accounting method for reducing the total amount of a tangible or physical asset…

Q: 36 Depreciation is the systematic allocation of the cost price of an item of property, plant and…

A: Depreciation expense is the expense charged on fixed assets with the passage of time.

Q: Which statement is INCORRECT about subsequent measurement of intangible assets? Q7 Select…

A: Intangible assets are identifiable non-monetary asset without any physical substance. An asset…

Q: Which depreciation method results larger depreciation expense in the early years of an asset's life…

A: Which depreciation method results larger depreciation expenses in the early years of an asset's life…

Q: Which of the following statements is false regarding intangible assets? O a. Intangibles with an…

A: Intangible Assets is a non monitory asset with our physical substance, such assets are identifiable…

Q: 32 Which of the following information is necessary to apply the straight-line method of depreciation…

A: Depreciation is used to record reduction in value of asset over the period of time. It can be…

Q: fhich of the tfollowing statement best describes depreciation? a. It is a means of spreading the…

A: Fixed assets: These are the assets which were used in the business for more than one year. These…

Q: Which of the following methods of fixed assets valuation provides more relevant information to users…

A: Generally the fixed assets are valued at cost less accumulated depreciation. But…

Q: Why are the costs of plant/long term assets recovered through depreciation vs. expensed out during…

A: Depreciation is referred to a decrease in the value of the fixed assets. It is a permanent loss. The…

Q: Which of the following statement is NOT correct? Select one: a. When the carrying amount of an…

A: If the carrying amount of an assets is more than the recoverable amount then the assets is said to…

Q: 5. 1.) What is the difference between current assets and plant and equipment? Do you think land…

A: AssetsThe resources owned by an individual or business is known as an asset. Enterprises have…

Q: Which of the following depreciation methods can NOT depreciate an asset below its salvage value?…

A: Solution: As per GAAP, asset can not be depreciated below its salvage value.

Q: Question 36: Match each depreciation function with its best description. SLN SYD DDB…

A: The method of computing depreciation varies with the methods used for analyzing book value of…

Q: Match the term on the left to the appropriate description on the right. v Historical cost A. The…

A: 1. In this question we match the write explanation with proper headings.This is match the columns.…

Q: Question 37 The process of transferring the cost of an asset to an expense account over time is…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: 12-When the asset cannot be used further and there is no value expected from the sale , the asset…

A: An asset is an item of property , equipment or a machine owned by a firm or an individual whichaas…

Q: 1. What are the three main factors used in determining depreciation of a fixed asset? 2. What is…

A: Depreciation systematically accounts for declines in the worth of a firm's assets over time. In the…

Q: Which one of the following tangible fixed assets would not normally be ?depreciated Option 1…

A: Depreciation is the method of allocating the cost of an asset over its useful life to account its…

Q: The term inadequacy refers to: Multiple Choice The inability of a plant asset to meet its demands.…

A: Inadequacy: Inadequacy refers to the state of being inadequate ( not sufficient). When we are not…

Q: Replacement cost of an asset is related to: A. Market value B. Current costs C.…

A: An asset is the resource owned by an entity which can be used for the daily operations of the…

Q: The optimal switch from declining balance depreciation to straight-line depreciation occurs when…

A: Straight-line method of depreciation has a fixed rate which is charged every year and thus, the…

Q: Which of the following statements are true about the revaluation model per IAS 16 Property, Plant…

A: IAS 16 Property, Plant, and Equipment specify the treatment of the tangible fixed assets of the…

Q: 1. It is a depreciation method based on the assumption that the value of a property is directl…

A: Note: “Since you have asked multiple question, we will solve the first question for you. If you want…

Q: Pre-Lecture Question 01 Which of the following is a characteristic of intangible assets? 1…

A: Intangible assets Intangible assets are a type of non-physical assets that have a life of greater…

Question

_______________is the reduction in the value of the fixed assets because of their use, wear and tear, efflux of time; depletion etc.

None of the given options

Amortization

Depreciation

Depletion

Clear my choice

Definition Video Definition Accounting method wherein the cost of a tangible asset is spread over the asset's useful life. Depreciation usually denotes how much of the asset's value has been used up and is usually considered an operating expense. Depreciation occurs through normal wear and tear, obsolescence, accidents, etc. Video

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Concept

VIEW

Final Answer

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Please help to pick which is the correct option
Question 10 Depreciation is: Oa. the loss in market value of an asset. Ob. the allocation of a long-term asset's cost to an expense account over the asset's life. OC. an increase in an asset's value over time or usage. d. none of the above. A Click Submit to complete this assessment.
LO1 The purpose of depreciation is to (a) spread the cost of an asset over its useful life. (b) show the current market value of an asset. (c) set up a reserve fund to purchase a new asset. (d) expense the asset in the year it was purchased.
QUESTION 29 Which of the following statement best describes depreciation? a. It is a means of spreading the payment for non-current assets over a period of years Ob.It is a decline in the market value of assets Oc. It is a means of spreading the cost of non-current assets over the estimated useful life d.It is a means of estimating the amount of money needed to replace the assets
QUESTION 17 Match the term on the left to the appropriate description on the right. v Historical cost A. The amount of a PP&E asset's acquisition cost that will be depreciated over the asset's useful life v Depreciable cost B. An asset whose value derives from rights and privileges rather than physical existence v Salvage value v Accumulated depreciation C. The capitalized acquisition cost of an asset v Intangible asset v Amortization D. The process of allocating an intangible asset's acquisition cost to expense over its useful life E. The book value of a fully-depreciated PP&E asset F. The total amount of depreciation expense that has been recorded to-date for a PP&E asset
1. It is a depreciation method based on the assumption that the value of a property is directly proportional to its age. a. Straight Line Method b. Sinking Fund Method c. Declining Balance Method d. Service Output Method 2. Which of the following is NOT a requirement of a depreciation method? a. It should be simple b. It should recover the capital c. BIR approved d. The book value should be higher than the market value 3. The decrease in the purchasing power of money a. Devaluation b. Depreciation c. Inflation d. Depletion
1 Select the best answer for the question. 11. What is the process by which the cost of a fixed asset over its estimated useful life is periodically charged to an expense a O A. Hypothecation B. Accretion C. Liquidation D. Depreciation O Mark for review (Will be highlighted on the review page) > O Hi Fu
4
Please give right answers to both questions
please answer why the option is correct and remaining incorrect
Chapter 8 Why are the costs of plant/long term assets recovered through depreciation vs. expensed out during the period purchased? Choose one of the following depreciation methods to discuss: straight line, units of production, declining balance. Share how depreciation using this method is calculated and provide an example of when this would be the most ideal method for application.
Which statement is INCORRECT about subsequent measurement of intangible assets? Q7 Select one: a. When using the cost model an entity should estimate the estimated useful life as well as the estimated residual value if the asset is determined to have an indefinite useful life b. When using the cost model an entity should estimate the estimated useful life as well as the estimated residual value if the asset is determined to have a definite useful life. c. The same model chosen by an entity should be used for all intangible assets in the same class. d. Intangible assets may be measured using either the cost model or the revalued cost model.