Which of the following methods of fixed assets valuation provides more relevant information to users of the financial statements?

Q: a) Describe the circumstances in which the revaluation model may be used in relation to non-current…

A: The revaluation model may be used in the following circumstances: 1)   If the fair value of the…

Q: Which of the following is (are) acceptable valuation(s) for reporting of assets on the balance…

A: The objective of the question is to identify the correct methods of asset valuation for reporting on…

Q: Which of the following is not a factor in selecting a depreciation method? a. salvage value b.…

A: Depreciation is charged on cost of assets on annual basis for repair and maintenance costs and…

Q: Which of the following concepts is not related to depreciation? Select one: a. Historical cost…

A:

Q: What is the purpose of charging depreciation in financial statements? A To allocate the cost of a…

A: Depreciation refers to a process of allocating the cost of the assets over their useful life. While…

Q: Explain the historical cost concept as it applies to long-term operational assets. Why is the book…

A: The cost of a fixed asset include every expenses incurred in bringing the asset into present…

Q: What are the effects of depreciation on the profit and loss account and balance sheet?

A: INTRODUCTION: A depreciation plan or chart makes it easier for organizations to keep track of…

Q: Which statement is INCORRECT about subsequent measurement of intangible assets? Q7 Select…

A: Intangible assets are identifiable non-monetary asset without any physical substance. An asset…

Q: _Accounting concept is in valuation of fixed assets

A: Option A. Historical cost concept says fixes asset is to be recorded at the amount paid to acquire…

Q: A general description of the depreciation methods applicable to major classes of depreciable assets?

A: Depreciation is the allocation of cost of the asset over the useful life of the asset. Depreciation…

Q: Intangible assets are initially recorded at a. expected future value. b. fair value. c. cost. d.…

A: Intangible assets are those which does not have physical substance. It includes copyright, goodwill,…

Q: Recording depreciation each period is necessary in accordance with the Select one: a. going concern…

A: Every fixed asset loses their value over the period of time. Depreciation is charged to record the…

Q: 32 Which of the following information is necessary to apply the straight-line method of depreciation…

A: Depreciation is used to record reduction in value of asset over the period of time. It can be…

Q: determining the value of the assets?

A: Criteria could be considered:-  1.Which information asset would be the most expensive to project?…

Q: Identify the main purpose of a flexible budget for managers.

A: Flexible Budget: A flexible budget is a budget that is prepared for different levels of the output.…

Q: Which of the following best describes the higher of an asset's net selling price and its value in…

A: Asset's net selling price is the amount obtainable from the sale of assets less any disposal cost.…

Q: QUESTION 17 Which of the following is the most likely journal erry to record the amortisation of an…

A: Amortization of Intangible Assets:- it means expensing the total cost of Intangible assets such as…

Q: Which one of the following disclousures is required by generally accepted accounting principle? a.…

A: The correct option is B. Balances of major classes of depreciable assets, by nature or function.

Q: Match the term on the left to the appropriate description on the right. v Historical cost A. The…

A: 1. In this question we match the write explanation with proper headings.This is match the columns.…

Q: Explain different types of depreciation.

A: Depreciation expenses come in a variety of forms, and there are numerous methods for calculating an…

Q: Why is depreciation expense recognized? Select one: a. To provide a better estimate of the market…

A: Depreciation expense is the systematic allocation of the cost of a long-term asset over its useful…

Q: The historical cost principle requires that when assets are acquired, they be recorded at Select…

A: Historical cost principle  Historical cost refers to the cost at the time of acquisition. Since…

Q: 97. The portion of the acquisition cost of an asset yet to be allocated is known as A. Written down…

A: Acquisition Cost is the value at which the asset is acquired. The cost of acquisition is the total…

Q: Valuing assets at the amount of cash or equivalents paid or the fair value of the consideration…

A: solution If the cash paid at the time of acquisition is used to measure an asset, then it is called…

Q: Valuing assets at the amount of cash or equivalents paid or the fair value of the consideration…

A: The elements of financial statements which contain the financial information about an organization…

Q: What are two advantages to basing the valuation of assets and liabilities on their historical cost?

A:

Q: Which of the following is not an asset utilization ratio

A: Asset Utilization Ratio: This ratio computes the total sales/revenue earned for every dollar of…

Q: Which of the following is most accurate in describing the measurement of assets and liabilities? a.…

A: Financial statements will provide accurate information about financial position of an organization.

Depreciation Methods

The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.

Depreciation Accounting

In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.