Question 37The process of transferring the cost of an asset to an expense account over time is calledA) write-offB) write-downC) approciationD)depreciationE) all of the aboveF) none of the aboveQuestion 41The method of determining depreciation that yields successive reductions in the periodic depreciation charge over the estimatedlife of the asset is theA) units-of-production methodB) double-declining-balance mathodC)straight-line methodD)time-valuation method

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Answered: Question 37 The process of transferring…

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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17 Equipment that cost 412000 and on which 191000 of accumulated depreciation has been recorded was disposed of for 181000 cash. The entry to record this event would include a ?
a4
Question 2 Depreciation is the process of valuing an asset at its fair value. increasing the value of an asset over its useful life in a rational and systematic manner allocating the cost of an asset to expense over its useful life in a rational and systematic manner. writing down an asset to its real value each accounting period
QUESTION 7 In computing depreciation, salvage value is a. the fair value of a plant asset on the date of acquisition. b. subtracted from accumulated depreciation to determine the plant asset's depreciable cost. C. an estimate of a plant asset's value at the end of its useful life. d. ignored in all the depreciation methods.
Part I According to Chapter 10, what is the difference between an ordinary repair, an asset improvement, and an extraordinary repair? Please give an example of each and describe how each would be accounted for. Part II (1) Please explain the Units-of-Output depreciation method and give an example of when it might be used. (2) Suppose that a machine had a units-of-production depreciation rate of $2 per operating hour and that the machine was used 20,000 hours the first year. Please calculate the depreciation for the first year and show what the journal entry would be. (3) Can we assume that the first year's depreciation expense (calculated in question 2 above) will also be the depreciation expense for subsequent years? Why or why not?
Depreciation of an asset based on the number of hours of usage is a(n) O accelerated method O replacement method time-based method O activity-based method
When calculating depreciation expense using the straight line method, useful life is expressed as time dollars Units expected to be produced salvage value Next *
[The following information applies to the questions displayed below.] Ramirez Company installs a computerized manufacturing machine in its factory at the beginning of the year at a cost of $83,600. The machine's useful life is estimated at 20 years, or 398,000 units of product, with a $4,000 salvage value. During its second year, the machine produces 33,800 units of product.
Please give right answers to both questions
QUESTION 19 When a company decreases the estimated useful life of a PP&E asset O a. It is admitting it made a mistake and needs to correct the financial statements affected by this mistake. O b. It will recognize less total depreciation expense than it originally planned. c. It must revise depreciation expense for future periods only. O d. It must disclose the change in estimate but depreciation expense will not change.
Which of the following best describes an accelerated depreciation method? A. A method by which an equal amount of expense is assigned for every full year of use. B. A method by which depreciation is based on the level of actual usage rather than the passage of time. C. A method of determining depreciation which assigns larger expenses to the initial years of an asset’s service and smaller expenses to the later years. D. A method of allocating the cost of a wasting asset to expense over the periods during which the value is removed from the property.

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