A To adjust CAPEX for taxable income B To isolate changes due to buying or selling of CAPEX C To reflect the economic value of the fixed assets

Q: What is the formula for the NET FIXED ASSET if it is not given in the financial statement?

A: The net value of a company's fixed assets is measured using net fixed assets. In a nutshell, net…

Q: Is long term investment is classified as non-current assets?

A: Generally, the liquidity of the assets plays a significant role in determining whether they are…

Q: The following are deductions from items of income, except: *   Cost of sales or service Regular…

A: 1) Cost of sales or service refers to the direct cost of producing the goods sold by a company. It…

Q: Which of the following is (are) acceptable valuation(s) for reporting of assets on the balance…

A: The objective of the question is to identify the correct methods of asset valuation for reporting on…

Q: Which of the following does define investment property? a. Property held to earn rentals b. Right…

A: An investment property is first valued at its purchase price. The lower of the fair value of the…

Q: The adjusted basis of an asset is the original cost (or basis) plus capital recoveries less capital…

A: Adjusted basis: The amount of original cost, plus additional investments (capital expenditure) and…

Q: How should (i) a change in calculating the provision for doubtful accounts, and (ii) change in…

A: The provision for doubtful accounts is accounting estimates that change on a yearly basis. It is…

Q: Which one of the following category outstanding expenses belong to? a. Intangible asset b. Current…

A: Outstanding expenses are those expenses which have been incurred during the period but not yet paid.…

Q: purpose of recognizing depreciation on the financial statements?  Is it designed to report PPE at…

A: Property, plant, and equipment (PPE) are long-term assets that are crucial to business operations.…

Q: The difference between book value of the asset with the proceeds received from its sale, will…

A: The book value of the asset is the cost of the asset less accumulated depreciation.

Q: Explain how the depreciation method selected affects the balance sheet and income statement

A: Depreciation is the loss in the value of the asset caused due to its usage, wear, and tear. There…

Q: A capital expenditure would be: Group of answer choices added to the cost of the asset ignored…

A: The Capital expenditure is that expenditure which is incurred for long term benefits. The benefits…

Q: Expenditures may be either capitalized or expensed. When Expenditure is capitalized it means that:…

A: Expenditures are the outflows of the business which help in the creation of assets that lead to the…

Q: Fixed assets are ordinarily presented on the balance sheet OO at their current market value under…

A: Fixed assets are ordinarily presented in balance sheet at their cost less accumulated depreciation.…

Q: The book value of an asset is computed as the asset's _____.

A: The assets can be defined as fixed assets and current assets.

Q: When using the fair value method, we adjust the reported amount of the investment for changes in…

A: The sales price agreed by the buyer and seller is termed as Fair value assuming both parties are…

Q: Th e valuation technique under which assets are recorded at the amount that would be received in an…

A: There are many valuation technique like cost method, market value method, base stock method, present…

Q: What are the long-term assets which do not have any physical existence? A. Intangible Assets B.…

A: Tangible Assets:These assets are physical, measurable Resources; like Property, Plant &…

Q: Describe  accounting for depreciation of fixed assets?

A: The depreciation is the reduction in the value of fixed assets with the usage and passage of time.

Q: Ac  Amortization Expense of Right of Use Asset Select one or more than one:   a. Normal balance…

A: The amortization expense of ROU (right-of-use) is to be shown under "Lease liability" in the income…

Q: What is the term for allocation of fixed assets to expense? * O bad debts expense O depreciation…

A: Introduction: Fixed Assets: The benefits from the assets are having more than one year called as…

Q: gain from the sale or exchange of property which is not a capital asset

A: Second option is wrong because gross income is the income before allowing deductions. Third option…

Q: When disposing of an available-for-sale investment, where is the gain or loss on disposal reported…

A:

Q: When a fixed asset is sold, what type of accounting entry is made?

A: Fixed asset is an tangible asset,non current asset.

Q: Where non-current assets are held for sale, they are required to be measured using: the…

A: Non-current assets are held for sale - Non Current Assets are part of the assets in the balance…

Q: What document shows when fixed assets are fully depreciated?

A: Depreciation: Depreciation means decrease in the value of tangible asset. Depreciation is a…

Q: The generally accepted accounting principle that supports recording the value of a property at the…

A: Correct answer is option 'D' i.e. cost principle. Explanation:  Under US GAAP As per cost principle…

Q: Identify an example of a non-current asset. O a. Machinery O b. Bank overdraft O c. Inventory d.…

A: Non-current asset refers to the asset which will not realize in cash within a year from the…

Q: Borrowing costs that are directly attributable to the acquisition or construction of a qualifying…

A: Ans. Borrowing costs that are directly attributable to the acquisition or construction of a…

Q: 3. Which of the following items must be depreciated? A. Inventory B. Land C. Machinery D. Capital…

A: Lets understand the basics.Depreciation is a reduction in value of asset due to wear and tear,…

Q: The difference between book value of the asset with the proceeds received from its sale, will result…

A: The book value of an asset is the value of the asset calculated by deducting the accumulated…

Q: The allocation of the cost of a tangible asset to expense in the periods in which the asset is used…

A: Tangible assets are physical assets of a company such as land, building, machine which is used to…

Q: What entry is made when a fixed asset is sold?

A: Normally businesses sell their fixed assets as part of strategic decision-making. Sale of an asset…

Q: Why do we report gains and losses of fixed assets on the income statement when we sell our fixed…

A: the gain or loss on the sale of fixed assets is typically reported as a separate line item on the…

Q: It is the initial cost of acquiring an asset, plus sales tax, transportation and normal costs of…

A: Cost of the asset is the cost which has been paid by the company in order to buy the asset and on…

Q: Why is depreciation on the income statement different from the depreciation on the balance sheet?

A: Depreciation is the reduction in the value of asset during a period of time due to wear and tear.…