Describe the term long-lived assets and the reason behind considering them to be a “bundle of future services’.

Question

Want to see more full solutions like this?

Answer 1

Question

Chapter 8, Problem 1Q

To determine

Describe the term long-lived assets and the reason behind considering them to be a “bundle of future services’.

Expert Solution & Answer

Explanation of Solution

Long-lived assets:

Long-lived assets refer to the fixed assets, having a useful life of more than a year that is acquired by a company to be used in its business activities, for generating revenue. Some of the examples of long-lived assets are plant and equipment, land in use, natural resources, and intangible assets such as patent.

Reason behind considering the long-lived assets to be a “bundle of future services”:

Long-lived assets are acquired in expectance of the future revenues they would bring for the company in the future period. It is for this reason that the long-lived assets are considered to be a “bundle of future services”. The cost of the asset is matched as an expense with the revenues generated by the asset from one period to another period throughout the useful life of the asset.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Students have asked these similar questions

The company has the following historical information based on similar trips taken overseas

A company reported an interest. expense of $50 million and cash paid for interest of $40 million. What was the change in interest payable for the period?

Given the solution and accounting question

Answer 2

Question

Chapter 8, Problem 1Q

To determine

Describe the term long-lived assets and the reason behind considering them to be a “bundle of future services’.

Expert Solution & Answer

Explanation of Solution

Long-lived assets:

Long-lived assets refer to the fixed assets, having a useful life of more than a year that is acquired by a company to be used in its business activities, for generating revenue. Some of the examples of long-lived assets are plant and equipment, land in use, natural resources, and intangible assets such as patent.

Reason behind considering the long-lived assets to be a “bundle of future services”:

Long-lived assets are acquired in expectance of the future revenues they would bring for the company in the future period. It is for this reason that the long-lived assets are considered to be a “bundle of future services”. The cost of the asset is matched as an expense with the revenues generated by the asset from one period to another period throughout the useful life of the asset.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Question

Chapter 8, Problem 1Q

To determine

Describe the term long-lived assets and the reason behind considering them to be a “bundle of future services’.

Expert Solution & Answer

Explanation of Solution

Long-lived assets:

Long-lived assets refer to the fixed assets, having a useful life of more than a year that is acquired by a company to be used in its business activities, for generating revenue. Some of the examples of long-lived assets are plant and equipment, land in use, natural resources, and intangible assets such as patent.

Reason behind considering the long-lived assets to be a “bundle of future services”:

Long-lived assets are acquired in expectance of the future revenues they would bring for the company in the future period. It is for this reason that the long-lived assets are considered to be a “bundle of future services”. The cost of the asset is matched as an expense with the revenues generated by the asset from one period to another period throughout the useful life of the asset.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 8, Problem 1Q

To determine

Describe the term long-lived assets and the reason behind considering them to be a “bundle of future services’.

Expert Solution & Answer

Explanation of Solution

Long-lived assets:

Long-lived assets refer to the fixed assets, having a useful life of more than a year that is acquired by a company to be used in its business activities, for generating revenue. Some of the examples of long-lived assets are plant and equipment, land in use, natural resources, and intangible assets such as patent.

Reason behind considering the long-lived assets to be a “bundle of future services”:

Long-lived assets are acquired in expectance of the future revenues they would bring for the company in the future period. It is for this reason that the long-lived assets are considered to be a “bundle of future services”. The cost of the asset is matched as an expense with the revenues generated by the asset from one period to another period throughout the useful life of the asset.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 8, Problem 1Q

To determine

Describe the term long-lived assets and the reason behind considering them to be a “bundle of future services’.

Expert Solution & Answer

Explanation of Solution

Long-lived assets:

Long-lived assets refer to the fixed assets, having a useful life of more than a year that is acquired by a company to be used in its business activities, for generating revenue. Some of the examples of long-lived assets are plant and equipment, land in use, natural resources, and intangible assets such as patent.

Reason behind considering the long-lived assets to be a “bundle of future services”:

Long-lived assets are acquired in expectance of the future revenues they would bring for the company in the future period. It is for this reason that the long-lived assets are considered to be a “bundle of future services”. The cost of the asset is matched as an expense with the revenues generated by the asset from one period to another period throughout the useful life of the asset.

Answer 6

Chapter 8, Problem 1Q

To determine

Describe the term long-lived assets and the reason behind considering them to be a “bundle of future services’.

Expert Solution & Answer

Explanation of Solution

Long-lived assets:

Long-lived assets refer to the fixed assets, having a useful life of more than a year that is acquired by a company to be used in its business activities, for generating revenue. Some of the examples of long-lived assets are plant and equipment, land in use, natural resources, and intangible assets such as patent.

Reason behind considering the long-lived assets to be a “bundle of future services”:

Long-lived assets are acquired in expectance of the future revenues they would bring for the company in the future period. It is for this reason that the long-lived assets are considered to be a “bundle of future services”. The cost of the asset is matched as an expense with the revenues generated by the asset from one period to another period throughout the useful life of the asset.

Answer 7

Chapter 8, Problem 1Q

To determine

Describe the term long-lived assets and the reason behind considering them to be a “bundle of future services’.

Answer 8

Expert Solution & Answer

Explanation of Solution

Long-lived assets:

Long-lived assets refer to the fixed assets, having a useful life of more than a year that is acquired by a company to be used in its business activities, for generating revenue. Some of the examples of long-lived assets are plant and equipment, land in use, natural resources, and intangible assets such as patent.

Reason behind considering the long-lived assets to be a “bundle of future services”:

Long-lived assets are acquired in expectance of the future revenues they would bring for the company in the future period. It is for this reason that the long-lived assets are considered to be a “bundle of future services”. The cost of the asset is matched as an expense with the revenues generated by the asset from one period to another period throughout the useful life of the asset.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Ch. 8 - Prob. 1Q Ch. 8 - Prob. 2Q Ch. 8 - 3. What are the classifications of long-lived...Ch. 8 - 4. Under the cost measurement concept. what...Ch. 8 - 5. Describe the relationship between the expense...Ch. 8 - 6. Distinguish between ordinary repairs and...Ch. 8 - Prob. 7Q Ch. 8 - 8. In computing depreciation, three values must be...Ch. 8 - 9. The estimated useful life and residual value of...Ch. 8 - 10. What type of depreciation expense pattern is...

Describe the term long-lived assets and the reason behind considering them to be a “bundle of future services’.

Describe the term long-lived assets and the reason behind considering them to be a “bundle of future services’.

Explanation of Solution

Want to see more full solutions like this?

Chapter 8 Solutions