PPE The revaluation model for PPE requires?a) Annual revaluations onlyb)Revaluations at regular intervals withsufficient frequencyc)One-time revaluation at management'sdiscretiond) Revaluation only when asset is impaired

Explanation of Revaluation Model: The revaluation model is an accounting method that allows…

Answered: The revaluation model for PPE requires?…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 7MC: Depreciation of a plant asset is the process of ________. A. asset valuation for statement of...

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Which of the following is a false statement regarding revaluation of PPE?A. Revalued amount is either fair value or depreciated replacement cost.B. If simultaneous revaluation is not possible, revaluation can be done on arolling basis provided revaluation of the class of assets is completed withina short period of time and provided the revaluations are kept up to date.C. The difference between the PPE’s carrying amount and its revalued amount isknown as revaluation surplus and should be presented in the statement ofcomprehensive income, net of applicable tax.D. When an asset's carrying amount is increased as a result of revaluation, theincrease shall always be credited to revaluation surplus regardless of theexistence of previous impairment loss recognized. Which of the following should be included as cost of inventory?A. Depreciation expense of the delivery equipment.B. Depreciation expense of the factory machinery.C. Storage cost of finished goods.D. None from the choices. In…
A fixed asset's estimated value at the time it is to be retired from service is called market value book value carrying value residual value
What refers to the present worth of cost associated with an asset for an infinite period of time? Select one: a. payback period b. capitalized cost c. incremental cost d. operating cost
Which one of the following is the proper dollar value of existing equipment to use in replacement analysis? A. Original cost B. Present market value if sold C. Present trade-in value D. Present book value E. Present market value if sold minus removal and selling expenses
Which of the following is true regarding special issues in accounting for long-term assets? A. An assets useful life can never be changed. B. An assets salvage value can never be changed. C. Depreciation expense calculations may need to be updated using new and more accurate estimates. D. Asset values are never reduced in value due to physical deterioration.
Which of the following is NOT a requirement for an investment to be classified as “held for sale”? a. A buyer or potential buyer has been located. b. The asset is expected to be sold within a year. c. There is a committed plan by management to sell. d. The asset must be marketed at a reasonable price.
Hw.9.
What is the first impact on asset turnover of promptly expensing a cash outlay compared to capitalizing it? The asset turnover rate is defined as follows:
Which of the following accounts would not be included in the Acquisition and Payment for Long-Lived Assets Cycle? a. Revenue b. Depreciation expense c. Gain on disposal d. Equipment
Which of the following payback methods considers the salvage value in its basic computations? a. Traditional payback b. Bailout payback c. Present value payback d. Discounted payback
Asset allocation is performed to A) reduce the load that intermediaries charge maximize the earning potential of an B) investment vehicle C) maximize the earning potential of a portfolio protect against significant declines in any D) one investment vehicle O E) maximize the returns from any one vehicle
Which control is not a part of the fixed asset system?a. formal analysis of the purchase requestb. review of the assumptions used in the capital budgeting modelc. development of an economic order quantity modeld. estimates of anticipated cost savings

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The revaluation model for PPE requires? a) Annual revaluations only b) Revaluations at regular intervals with sufficient frequency c) One-time revaluation at management's discretion d) Revaluation only when asset is impaired