Why FASB treat the spending on the search and development as expense why it can’t be treated as long term asset.

Q: Demonstrates the difference between depreciation costs as expenses and the cash flow generated by…

A: Depreciation expense: Depreciation expense is a non-cash expense, which is recorded on the income…

Q: The transfer to expense of the cost of intangible assets attributed to the passage of time or…

A: Introduction:- Assets are mainly classified into two types as follows under:- Tangible assets…

Q: practice, would you expect the depreciation expense for a non-current asset to be overestimated or…

A: Depreciation is charged for non current asset being tangible asset, because of its wearing and tear…

Q: what is Intangible Asset ? what is  Wasting Assets ?  what is  Asset Cost ? what is  Residual…

A: In the world of finance and accounting, there are key concepts that businesses use to manage their…

Q: A To adjust CAPEX for taxable income B To isolate changes due to buying or selling of CAPEX C To…

A: The net capital expenditures are the difference between capital investments and depreciation, and…

Q: re for impairment loss assets, what will happen/effect?

A: Impairment Recognition Business assets should be tested for impairment when a situation occurs that…

Q: Which of the following is INCORRECT regarding depreciation? Select one: O a. It is not a matter of…

A: Depreciation is an accounting method used to allocate the cost of tangible assets over their useful…

Q: Allowable depreciation reduces the basis of an asset whether the depreciation is deducted or not.

A: Allowable depreciation is the depreciation of the asset which is must allowed to deduct from the tax…

Q: Expense Recoognition: What does it mean when assets are "expensed"? Why do costs do not qualify as…

A: Expense recognition refers to the accounting process of recording expenses in the financial…

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: Why allow the fair value option for financial assets and liabilities and not for, say, buildings or…

A:

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 of the following is not a factor that limits the service life of an asset? a. Operational use…

A: Service life can be limited due to physical causes and functional causes such as deterioration,…

Q: Can the selection of a depreciation method affect a company’s asset replacement policy (i.e., the…

A: 1. Depreciation Expenses - Depreciation Expenses are the expense incurred on the wear and tear of…

Q: ts) Which principle has FASB used to determine the accounting method for recordin elopment costs? 4…

A: There are specific methods of accounting for different activities and there is specific method of…

Q: Why is the recording of depreciation expense necessary?

A: Introduction:- Depreciation is non cash expenses. Which is charged on fixed asset. Which is charged…

Q: why are inventories considered a current asset and not part of long-term assets

A: Inventory is one of the important asset being used in business. It includes inventory of raw…

Q: Why is the cost of certain kinds of property not recoverable at all by way of de-preciation,…

A: Cost of some assets are not recoverable because of the main reason that these assets do not qualify…

Q: The cost of an asset that is subject to depreciation os called?

A: Assets: Assets are those resources that are owned by the business organization which has an economic…

Q: The following terms are mismatched with its definitions. Match the terms to its correct definitions.…

A: The terms are matched with the definitions in below table:

Q: As prepaid assets are used to generate revenue, an adjustment is necessary to reduce the previously…

A: Prepaid assets are those assets which consists of advance payments for goods and services that are…

Q: The modified internal rate of return (MRR) test is designed to address a limitation associated…

A: The question is asking about the limitation of the internal rate of return (IRR) that the modified…

Q: Which one of the following statements is not true regarding depreciation? a. It is a systematic,…

A: With the passage of time, the value of assets goes on decreasing due to various reasons such as a…

Q: If depreciation expense is not recorded how would that affect financial statements and…

A: Depreciation records the usage of a fixed asset over a period of time and allocates its cost to the…

Q: How are capital expenditures made to improve the quality of a capital asset accounted for? Would the…

A: Capital expenditure funds are funds used by a company to acquire or upgrade physical assets such as…

Q: What are depreciation and its purpose? Does the book value of a fixed asset (cost minus accumulated…

A: Depreciation is an expense which shows the decrease in the asset's value over the life of the asset…

Q: Which of the following cases would result in an actuarial loss? Projected benefit obligation…

A: As per IFRS, Actuarial gains and losses are changes in the present value of the defined benefit…

Q: Expense Recognition Question: Why do previously recognized assets need to be expensed? Explain.

A: Previously recognized assets refer to assets that have been recorded on a company's balance sheet in…

Q: When should an expenditure be recorded as an asset rather than an expense? O Never O When future…

A: Lets understand the basics.When any expense which is going to have future benefits needs to…

Bookkeeping

Bookkeeping is the process of recording the financial transactions of a company on a regular basis. With the process of bookkeeping, companies can track important financial information that helps management in making crucial decisions.