Answered: What does it mean the "property and…

What does it mean the "property and equipment are started at cost"? A. Fair value B.historical cost only C. Historical cost less accumulated depre

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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Salvage value is: O Also called residual value Also called scrap value O An estimate of the asset's value at the end of its benefit period O A factor relevant to determining depreciation O All of the above
9. On initial recognition, property, plant and equipment should be measured at costA. Historical cost B. Current cost C. Realizable valueD. Present valueE. All of the aboveF. None of the above
A) What is residual value? Support your answer with an example ( word count 100) B) In practise, would you expect the depreciation expense for a non-current asset to be overestimated or underestimated? Explain why this is the case.
Indicate whether each of the following statements is true or false. The recoverable amount used to impairment test a long-lived tangible asset is defined as the asset’s fair value less costs to sell. After an impairment loss is recorded, the recoverable amount becomes the basis for the impaired asset and is used to calculate depreciation in future periods. Land acquired for resale or disposal is more appropriately classified as inventory rather than property, plant and equipment.
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
Indicate whether each of the following statements is true or false. The recoverable amount used to impairment test a long-lived tangible asset is defined as the asset's fair value less costs to sell. After an impairment loss is recorded, the recoverable amount becomes the basis for the impaired asset and is used to calculate depreciation in future periods. Land acquired for resale or disposal is more appropriately classified as inventory rather than property, plant and equipment.
Which of the following characteristics is most likely to diff erentiate investment propertyfrom property, plant, and equipment?A. It is tangible.B. It earns rent.C. It is long-lived.
In all cases, net property, plant and equipment (PP&E) should be calculated as the gross PP&E less the accumulated depreciation. Choices: True or False
A gain or loss on the sale of a plant asset is determined by comparing the: A. Asset's original cost with the sales proceeds B. Asset's book value with the sales proceeds C. Asset's original cost with the asset's book value. D. Initial estimate of the asset's salvage value with the sales proceeds. E. None of these.
3) Which of the following best describes a depreciation base?7) The acquisition cost of an asset relative to its fair value O The estimated market value of an asset at the end of its useful life O The historical cost of an asset less the depreciation recognized to date O The amount that should be expensed over an asset's useful life
A limited-life intangible is reported at its ____________. a. replacement cost b. carrying amount unless impaired c. liquidation value d. acquisition cost
What is meant by the “depreciable cost” of a plant asset?