33.What characterizes the accounting for involuntary conversions of fixed assets? A. Defer gain if asset is replaced B. Record as regular asset sale C. Recognize loss immediately D. Capitalize insurance proceeds provide answer

33.What characterizes the accounting for involuntary conversions of fixed assets? A. Defer gain if asset is replaced B. Record as regular asset sale C. Recognize loss immediately D. Capitalize insurance proceeds provide answer

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 4MC: Which of the following statements about capitalizing costs is correct? A. Capitalizing costs refers...

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33.What characterizes the accounting for involuntary conversions of fixed assets? A. Defer gain if asset is replaced B. Record as regular asset sale C. Recognize loss immediately D. Capitalize insurance proceeds solve this
33.What characterizes the accounting for involuntary conversions of fixed assets? A. Defer gain if asset is replaced B. Record as regular asset sale C. Recognize loss immediately D. Capitalize insurance proceeds
What characterizes the accounting for involuntary conversions of fixed assets? a) Record as regular asset sale b) Defer gain if asset is replaced c) Recognize loss immediately d) Capitalize insurance proceeds
Note: Option A is incorrect. Need correct option
In an acquisition of assets, the acquirer must give up which of the following? A. Other Assets B. Cash C. Liability D. Any of the given
Which of the following statements about capitalizing costs is correct? A. Capitalizing costs refers to the process of converting assets to expenses. B. Only the purchase price of the asset is capitalized. C. Capitalizing a cost means to record it as an asset. D. Capitalizing costs results in an immediate decrease in net income.
The amortization process is like what other process? A. depreciation B. valuation C. recognizing revenue D. capitalization
True or False: Depreciation is an example of a contra asset account.
Which of the following must be recorded in the accounting records when an asset that is NOT held for sale is derecognized? A Removal of the asset. B Gain or loss on derecognition. C All of the above items must be recorded in the accounting records. D Depreciation up until the date of derecognition.
When an asset is sold, the accumulated depreciation account for the asset must be closed off to the asset realisation account. A. True B. False
What is the purpose of charging depreciation in financial statements? A To allocate the cost of a non-current asset over the accounting periods expected to benefit from its use B To ensure that funds are available for the eventual replacement of the asset C To reduce the cost of the asset in the statement of financial position to its estimated market value D To account for the ‘wearing-out’ of the asset over its life
Concept