Question 4A gain on the sale of a long-term asset is recorded when cash proceeds are:- a. less than the book value of the assets sold.- b. less than the historical cost of the asset sold.- c. less than the accumulated depreciation.- d. greater than the book value of the asset sold.

SOLUTION- LONG TERM ASSETS ARE INVESTMENT IN COMPANY THAT WILL BENEFIT THE COMPANY FOR MANY YEARS.

Answered: Question 4 A gain on the sale of a…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

13. Using the indirect method to calculate net cash provided (or used) by operating activities, which of the following is subtracted from net income? A. Decrease in Income Taxes Payable. O B. Depreciation Expense. C. Amortization of Intangible Assets. D. Bad Debts Expense. O E. None of the Above.
What is the common characteristic of all the assets owned by a company? A. Intangible B. Long Life C. Future Economic Benefits D. None of the above
1. An asset that is not expected to be converted to cash or consumed within one year or the operating cycle is:
A loss on impairment on a limited life intangible asset is the difference between the asset’s Select one: carrying value and its undiscounted expected future net cash flows. fair value and its net realizable value. fair value and its discounted expected future net cash flows. carrying value and its fair value.
5. How should accounting fees for acquisition be treated? A. Expensed in the period of acquisition B. Capitalized as part of acquisition cost C. Deferred and amortized D. Deferred until the company is disposed of or wound-up 6.The excess of the price paid over the fair value of the net identifiable assets acquired should be recognized as A. Goodwill to be amortized periodically for 20 yearS. B. Expenses immediately C. Goodwill not subject to amortization but subject to impairment D. Goodwill to be amortized for 40 years 7.Under PFRS 3 (Business Combinations) A. Both direct and indirect costs are to be capitalized B. Both direct and indirect costs are to be expensed C. Direct costs are to be capitalized and indirect costs are to be expensed D. Indirect costs are to be capitalized and direct costs are to be expensed
Which of the following statements is correct with respect to the sale of a depreciable asset? Multiple Choice A gain occurs when the selling price exceeds book value. A sale for a gain results in a decrease in total assets. A sale for a loss results in an increase in total assets. A loss occurs when the selling price is more than book value.
In determining the value in use, which of the following cash flow is excluded from the computation? I. Income tax receipts or payments. II. Net cash flows received or paid on the disposal of the asset at the end of its useful life in an arm's length transaction which is after using the asset. III. Future costs of improving or enhancing the asset's performance.
Fair value as a method of asset measurement is defined as: Multiple Choice O O the cost of an asset adjusted for the depreciation or amortization accumulated over its lifetime. price that would be received to sell assets in an orderly transaction between market participants on a given date. the net amount of cash into which an asset could be converted in the ordinary course of business. the value of what is given in exchange for the asset at its initial acquisition.
How would accumulated depreciation be classified on the balance sheet? current asset fixed asset current liability O long term liability
9 - When identifying undervalued and overvalued assets, which of the statements below is false? An asset is properly valued if its estimated rate of return is equal to its required rate of return. An asset is considered overvalued if its estimated rate of return is below its required rate of return. An asset is considered undervalued if its estimated rate of return is above its required rate of return. An asset is considered overvalued if its required rate of return is below its estimated rate of return. All of the above answers are false. None of the above answers is false.
Question 16 The undepreciated capital cost (UCcC) is equal to O a, the book value of an asset for the purpose of taxation under the CCA system. O b, the market value of an asset. O , the salvage value of an asset. O d, the scrap value of an asset.
Which one of the following statements regarding the book value of an asset is correct? Multiple Choice О It reflects the original cost of the asset less accumulated depreciation. O It is the original cost at which the asset was purchased. It is the original cost of the asset minus the depreciation expense for that asset during the year. O It is the fair value of the asset if the asset is sold.

SEE MORE QUESTIONS

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

Financial and Managerial Accounting

Accounting

ISBN:

9781259726705

Author:

John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS

Question 4 A gain on the sale of a long-term asset is recorded when cash proceeds are: a. less than the book value of the assets sold. b. less than the historical cost of the asset sold. Oc. less than the accumulated depreciation. d. greater than the book value of the asset sold.