Tutor Need Your Help 2. The revaluation model for PPE requires?1. Revaluations at regular intervals withsufficient frequency2. One-time revaluation at management'sdiscretion3. Annual revaluations on4. Revaluation only when asset is impaired

Explanation of Revaluation Model:The revaluation model is an accounting method under IAS 16 that…

Answered: 2. The revaluation model for PPE…

Auditing: A Risk Based-Approach (MindTap Course List)

11th Edition

ISBN:9781337619455

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter12: Auditing Long-lived Assets And Merger And Acquisition Activity

Section: Chapter Questions

Problem 5CYBK

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The optimal switch from declining balance depreciation to straight-line depreciation occurs when what condition is met? a. The first time the depreciation deduction from straight-line depreciation is greater than thesalvage value of the asset b. The first time the depreciation deduction from straight-line depreciation is less than would result if declining balance were continued c. The first time the depreciation deduction from straight-line depreciation is greater than would result if declining balance were continuedd. The asset is no longer in service.
Which of the following methods applies a declining depreciation rate each period to an asset's constant value? a.Double-declining-balance methodb.Straight-line methodc.Sum-of-the-years'-digits methodd.Units-of-production method
A fixed asset's estimated value at the time it is to be retired from service is called market value book value carrying value residual value
What is the systematic periodic transfer of the cost of a fixed asset to an expense account during its expected useful life called (also thought of as the decline in usefulness of the fixed asset over time)? Group of answer choices fixing costing amortization depreciation
Why is depreciation expense recognized? Select one: a. To provide a better estimate of the market value of the depreciated assets. b. So that the balance sheet value of plant assets will more accurately reflect the replacement cost of the assets. c. To ensure that cash will be available at the end of the assets' useful life in order to replace it. d. To match the cost of the asset against the revenue using a reasonable allocation. method. Save AnswersNext
4. The most appropriate definition of depreciation is: A. A means of determining the decrease in the market value of an asset over time B. A means of allocating the cost of an asset over a number of accounting periods C. A means of setting funds aside for the replacement of the asset D. A means of estimating the current value of the asset
Consider the following information regarding the performance of a money manager in a recent month. The table represents the actual return of each sector of the manager's portfolio in column 1, the fraction of the portfolio allocated to each sector in column 2, the benchmark or neutral sector allocations in column 3, and the returns of sector indices in column 4. Equity Bonds Cash Actual Return 2X 1 0.5 Actual weight 0.70 0.20 0.10 Benchmark leight: 0.60 0.30 0.10 Index Return 2.5% (5&P 500) 1.2 (Barclay's Aggregate) 0.5 Required: a-1. What was the manager's return in the month? (Do not round intermediate calculations. Input all amounts as positive values. Round your answer to 2 decimal places.) 4 The manager's return in the month is % a-2. What was her overperformance or underperformance? (Do not round intermediate calculations. Input all amounts as positive values. Round your answer to 2 decimal places.)
Which method of depreciation would result in a depreciation expense that is more if the asset is used more and a depreciation expense that is less if the asset is used less? Group of answer choices Double-declining balance There is no such method Units of production Straight-line
3. When moving from the low end to the high end of a relevant range, straight-line depreciation expense per unit: a. Increases b) Decreases c. Remains the same d. Changes unpredictably
What does improper utilization of resources and over investment in assets indicate? A Low Return on Investment B. Low Sales C. High Sales D. Depreciation of Assets
27. the best technique to use in valuing a tangible loss is:A) A replacement costB) Market Values C) present values of future revenues D) direct labor dollar values
Residual value is: A. Also called residual value.B. Also called scrap value.C. An estimate of the asset's value at the end of its benefit period.D. A factor relevant to determining depreciation.E. All of these.

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2. The revaluation model for PPE requires? 1. Revaluations at regular intervals with sufficient frequency 2. One-time revaluation at management's discretion 3. Annual revaluations on 4. Revaluation only when asset is impaired