For some of the fixed assets of a business, the balance in Accumulated Depreciation is equal to the cost of the asset. (a) Is it permissible torecord additional depreciation on the assets if they are still useful to the business? Explain. (b) When should an entry be made to remove thecost and the accumulated depreciation from the accounts?

Q: When faced with uncertainty there is a need to exercise prudence. Which of the following would be…

A: PRUDENCE IS USALLY SEEN AS A VIRTUE . HOWEVER , IT CAN BE EXCESSIVE IF IT HAS AN UNREASONABLE IMPACT…

Q: Depreciation is a process that involves: a. Increasing the value of assets b. Distributing the cost…

A: Depreciation reflects the gradual consumption, wear and tear, or obsolescence of the asset as it…

Q: 30) A loss on disposal of an asset would be reported: A) as a direct increase to the asset account…

A: To modernize technology, the corporation sells obsolete machinery or technology; this is known as…

Q: Which of the following options regarding income earned will not be classified as revenue? Select…

A: Lets understand the meaning of revenue and gain. Revenue is a income generated from the normal…

Q: Illustrate the rules and laws that govern asset depreciation and the methods that accountants use to…

A: Any asset cannot last for life and hence its original value reduces because of its use which is…

Q: Which of the following statements are TRUE? a. The reason for including a treatment of depreciation…

A: The company needs to present financial statements true and fair, that is in compliance with the…

Q: Explain the concept of impairment in accounting, and discuss the indicators and procedures used to…

A: In accounting, impairment refers to a reduction in the carrying value of a long-lived asset when its…

Q: Is depreciation a permanent account or temporary account? Explain?

A: Depreciation refers to the process of allocating the total cost of an asset (except land) to expense…

Q: Which one of the following is used as a criterion for deciding whether a resource should be regarded…

A: Assets:-All resources owned or controlled by a business are called assets.It is used to produce…

Q: The firm recognizes an expense when the following condition(s) hold(s):   Select one: A. The…

A: Introduction:- Generally expenses should be recognized in the same period as the revenues relating…

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: What types of properties are likely to be valued using the receipts and expenditure or profits…

A: The process of acquiring an estimate of the price of your home from a realtor or an independent…

Q: Which of the following items are added back to Net Income when the Indirect method is being used to…

A: An organization primarily uses a cash flow statement to track and measure its financial inflows and…

Q: ment of a long-term asset, the depreciation of a long-term asset, and the sale of a long-term…

A: The organization would be established for doing business in the market. Thus, it requires a lot of…

Q: When a company changes the way it depreciates an asset in midstream, what change would be made to…

A: Depreciation:   Depreciation refers to the reduction in the monetary value of a fixed asset due to…

Q: Accumulated depreciation, equipment is reported:  Select one: On the balance sheet as a subtraction…

A: Depreciation is the non cash expenditure which is charged in the income statement as per matching…

Q: On a company's balance statement, why are fixed assets depreciated?

A: Fixed asset:  It can be defined as a tangible asset that is used by the business in its production…

Q: What types of accounts compromise Income? and make up Net

A: Sales are subtracted from the cost of products sold, selling, overall and administrative…

Q: When it is probably that future economic benefits associated with an asset will flow to the entity,…

A: Accounting standard 1 deals with the disclosure of accounting policies which states that the company…

Q: financial statement does depreciation expense go on

A: Depreciation expense is an estimate of wear and tear caused to a fixed asset due to its use in the…

Q: When does a company record an asset related to a gain contingency? a. When future events will…

A: A contingency, in general, is an uncertain future event or condition that may result in a gain or a…

Q: What is the difference between depreciation expense and accumulated depreciation?

A: “Hey, since there are multiple questions posted, we will answer first question. If you want any…

Q: Why would companies choose one method of accounting for Depreciation over another method?  What are…

A: Most companies choose one method of accounting over another method on the basis of the accounting…

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: Which of the following is NOT true of revenue expenditure? It is an expenditure that keeps an asset…

A: Revenue expenditure is considered as a short-term expense while capital expenditure is long-term i.e…

Q: Which one of these statements is true of the accumulated depreciation account? O the account is to…

A: Accumulated depreciation is the total of depreciation applied on a fixed asset on a particular point…

Q: How does the concept of depreciation work in accounting, and what methods are commonly used to…

A: Depreciation is a fundamental concept in accounting that refers to the gradual reduction of the…

Q: When is accumulated depreciation reduced to zero? Explain and provide examples for each element…

A: Accumulated depreciation is a contra-asset account that represents the cumulative depreciation…

Q: Depreciation expense is:

A: Answer

Q: How does the concept of depreciation affect the financial statements of a company, and what methods…

A: Depreciation is the systematic distribution of a tangible asset's purchase price over the course of…

Q: What is the meaning of the terms ‘depreciation’, ‘amortization’, and ‘depletion’ specified in…

A: Answer:-  International accounting standards:- International accounting standard are a collection of…

Q: uestion: Explain the concept of depreciation expense in accounting and how it is calculated using…

A: Depreciation expense is an accounting concept used to allocate the cost of tangible assets over…

Q: Discuss whether and how a company should account for a revaluation increase and a revaluation…

A: The answer are as follows

Q: Describe the two categories of accounting depreciation?

A: Depreciation:   Depreciation refers to the reduction in the monetary value of a fixed asset due…