Which of the following most accurately reflects the concept of depreciation as used inaccounting?The proccess of charging the decline in value of an economic resource to income in the period inwhich the benefit occured.O The proccess of allocating the cost of tangible assets to expense in a systematic and rational mannerto those periods expected to benefit from the use of the asset.OA method of allocating asset cost to an expense account in a manner which closely matches thephysical deterioration of the tangible asset involved.O An accounting concept that allocates the portion of an asset used up during the year to the contraasset account for the purpose of properly recording fair market value of tangible assets.

In accounting, depreciation refers to the allocation of the cost of a tangible asset over its useful…

Answered: Which of the following most accurately…

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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What provides the framework for conducting return on assets (ROA) analysis by incorporating revenues and expenses to generate net profit margin, as well as inclusion of assets to measure asset turnover?
Which one of the following disclousures is required by generally accepted accounting principle? a. Depreciation expense for each major class of asset b. Balances of major classes of depreciable assets, by nature or function c. Accumulated depreciation on each depreciable asset d. An explanation of why the depreciation method used was selected by management
Which method of the matching principle is used when a company recognizes depreciation expense on the income statement? Group of answer choices A. Installment method B. Systematic and rational allocation C. Immediate recognition D. Associating cause and effect
Consider the following statements:I. If the financial asset is reclassified from amortized cost to FVOCI, the financial asset is measured at fair value at the reclassification date and a new effective interest rate must be determined based on the new carrying amount or fair value at reclassification date.II. The difference between previous carrying amount and fair value of a financial asset when reclassified from amortized cost to FVPL is recognized in profit or loss.III. The cumulative gain or loss previously recognized in other comprehensive incomeis reclassified to profit or loss at reclassification date when the financial asset is reclassified from FVOCI to FVPL.IV. The original effective rate is not adjust for financial assets that are reclassified from FVPL to FVOCI.State whether the foregoing statements are incorrect.a. I and II are incorrectb. II and III are incorrectc. I and IV are incorrectd. All the statements are incorrect
38. Which of the following account statements regarding assets is not true? a. An asset represents a probable future economic benefit b. Assets are obtained or controlled as a result of past or probable future transactions c. Assets reported on the balance sheet include both monetary and nonmonetary resources d. Assets include costs that have not yet been matched with revenues
It is the initial cost of acquiring an asset, plus sales tax, transportation and normal costs of making asset serviceable. a. Adjusted standard cost O b. Cost basis O c. Standard cost O d. Adjusted cost basis
The methods for depreciating assets are 1) straight-line depreciation; 2) declining balance depreciation (specifically double declining balance); and 3) units-of-production or units-of-activity or activity based depreciation. Is it possible that I can recieve help with descibing each method and comparing the different depreciation methods and its effect on net operating income?
In accounting, which statement accurately reflects the Historical Cost Accounting concept and its implications for financial reporting? a ) Historical Cost Accounting records assets at their original purchase price. b) Historical Cost Accounting adjusts asset values based on current market prices. c) Historical Cost Accounting emphasizes future projected values for assets. d) Historical Cost Accounting disregards the original purchase price of assets.
Financial reporting purposes, long-lived, revenue-producing assets typically are classified in two categories. What are the two categories explain?
Question: What is the purpose of depreciation in accounting? a. Increase asset value b. Allocate the cost of an asset over its useful life c. Reduce liabilities d. Determine net income
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.
Accounting depreciation can be broken into two categories. How?

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