Select the best answer for the question. 5. Which of the following statements about the Accumulated Depreciation account is false? O A. The use of a separate Accumulated Depreciation account reveals the total amount of depreciation previously recorded by accumulating this information in the separate ledge OB. The Accumulated Depreciation account is referred to as a contra asset account O C. The use of a separate Accumulated Depreciation account preserves information pertaining to the original cost of the related asset. O D. The Accumulated Depreciation account normally has a credit balance and is therefore classified as a liability...

Select the best answer for the question. 5. Which of the following statements about the Accumulated Depreciation account is false? O A. The use of a separate Accumulated Depreciation account reveals the total amount of depreciation previously recorded by accumulating this information in the separate ledge OB. The Accumulated Depreciation account is referred to as a contra asset account O C. The use of a separate Accumulated Depreciation account preserves information pertaining to the original cost of the related asset. O D. The Accumulated Depreciation account normally has a credit balance and is therefore classified as a liability...

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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Why must we have an entry to remove fully depreciated fixed assets (no salvage value) from the books if there is no profit or loss on the disposal?
8. Normal repair and maintenance of an asset is an example of what? a.Revenue expenditure b.Capital expenditure c.An expenditure that will be depreciated d.An expenditure that should be avoided
The key difference between amortization and depreciation is that amortization charges off the cost of an intangible asset, while depreciation does so for a tangible asset. True False
If fair value of an impaired intangible asset recovers after an impairment has been recognized, a restoration gain may be recorded in a subsequent period. O a. True O b. False
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75. An alternative term used for accumulated depreciation expenses? A. O Provision for depreciation B.Cumulative depreciation C.Targeted depreciation D.Depletion
Depreciation expense is considered as allowable deduction Select one: True False
97. The portion of the acquisition cost of an asset yet to be allocated is known as A. Written down value B. Accumulated value C. O Realizable value D. O Salvage value
Explain why depreciation on an existing asset is always irrelevant.
Depreciation is a process of Select one Oa. asset valuation D. cost allocation C Cost accumulation. d. asset devaluation. e. The answer does not exst
Which of the following is not true in regard to selling fixed assets? a.If the selling price is more than the book value, a gain is recorded. b.The cash receipt is recorded. c.The journal entry is similar to discarding fixed assets. d.Accumulated Depreciation will be credited.
3. Recognizing depreciation is an application of which matching principle?