Why must we have an entry to remove fully depreciated fixed assets (no salvage value) from the books if there is no profit or loss on the disposal?

Q: The book value of a depreciable asset is       A. The original cost of the asset.       B. The…

A: Book value of a depreciable asset means value at which that asset is shown in the balance sheet of…

Q: Why are assets impaired?

A: Assets are those tangible and intangible resources in the business which the business can own and…

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: It is the gradual diminution of the useful value of tangible property resulting from wear and tear…

A: (i) Depreciation: Depreciation is the gradual decrease in the value of the asset due to wear and…

Q: Which of the following is NOT a way to dispose of an asset? a.Sell it. b.Exchange it for another…

A: solution concept Disposing of the asset                 Discarding a asset means retiring the asset…

Q: The cost of an item, an estimate of its salvage value, and an expected usable life are all factors…

A: The Answer

Q: Why would refinancing be an alternative to sale of the property?

A: Individuals always buy the properties taking the mortgage because payment for buying the property…

Q: Should the engineers be able to assess the reality of depreciating fixed assets?

A: A company should assess the position of its fixed asset and check for its impairment if condition…

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: (a)  When would the disposal of a long-term asset result in no gain or loss? (b)  When would the…

A: Long-term assets can be defined as those assets which are held by an investor for a period of more…

Q: 34. Which of the following is not one of the basic questions that must be answered before the amount…

A: The correct option is (B). The products or services being rendered by the asset has no relations…

Q: Which one of the following items is not a consideration when recording periodic depreciation expense…

A: Depreciation is the reduction in value of asset over the period of time. It is due to the normal…

Q: When a destroyed business asset is replaced, which of the following is true?

A: When the asset of business is destroyed then the destroyed assets's…

Q: A) What is residual value? Support your answer with an example ( word count 100)

A: Lets understand the basic. When person purchase the asset they expected that after the useful life…

Q: Replacement analysis should be done at the end of the useful life of the property.

A: Replacement analysis is the analysis in which the company analyse the different aspects of the…

Q: What negative consequences result when fixed asset records include assets that the firm no longer…

A: Assets that were purchased for long-term use in the organization is called fixed assets, they also…

Q: Depreciation is a process of asset valuation where an asset's book value (cost less accumulated…

A: Depreciation is an accounting method of allocating the cost of tangible assets over its useful life.…

Q: Explain what is meant by the impairment of the value of property, plant, and equipment and…

A: Property, Plant, and Equipment:  Property, Plant, and Equipment refers to the fixed assets, having a…

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

A:

Q: What is the entry to remove equipment that is sold before it is fully depreciated?

A: Depreciation is charged on cost of asset in order to reflect reduction in value of asset over its…

Q: what is the ultimate purpose of long-term assets? How should the cost of these assets be allocated…

A: The total cost of an asset is the sum of all the expenses a company made to purchase or create the…

Q: True or False: increasing the salvage value increases depreciation expense. False True or False:…

A: Lets understand the basics. Depreciation is a reduction in value of asset due to wear and tear,…

Q: Can the members possibly stipulate that upon the return of assets, due to dissolution and other…

A: Return of assets is the amount that a company can generate through assets.