Financial And Managerial Accounting
15th Edition
ISBN: 9781337902663
Author: WARREN, Carl S.
Publisher: Cengage Learning,
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Question
Chapter 9, Problem 9DQ
A.
To determine
Explain whether it is permissible to record additional depreciation on the assets if they are still useful in the business.
(B)
To determine
Explain accounting treatment for removing the cost and the
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Students have asked these similar questions
Sometimes, for the fixed assets of certain businesses, the balance in Accumulated Depreciation is equal to the cost of the asset.
a. Can one record additional depreciation on the assets if the assets are still useful to the business?
b. Why? Explain:
c. Also, when can such a business make an entry to remove the cost and accumulated depreciation of the fixed assets from the account?
Is it permissible to record additional depreciation on the assets, if they are still useful to the business
Which of the following statements relating to the Accumulated Depreciation account is correct?
Select one:
O a. The normal balance of the Accumulated Depreciation account is a debit balance.
O b. The Accumulated Depreciation account allows the accountant to determine the precise market value
of the related asset.
O c. The Accumulated Depreciation account is classified as a Liability account.
O d. The balance in Accumulated Depreciation account reflects the portion of the historical cost of the
asset that has become expense since the item was purchased.
Chapter 9 Solutions
Financial And Managerial Accounting
Ch. 9 - ONeil Office Supplies has a fleet of automobiles...Ch. 9 - Prob. 2DQCh. 9 - Prob. 3DQCh. 9 - Prob. 4DQCh. 9 - Prob. 5DQCh. 9 - Keyser Company purchased a machine that has a...Ch. 9 - Prob. 7DQCh. 9 - A. Under what conditions is the use of an...Ch. 9 - Prob. 9DQCh. 9 - Prob. 10DQ
Ch. 9 - Straight-line depreciation A building acquired at...Ch. 9 - Units-of-activity depreciation A truck acquired at...Ch. 9 - Double-declining-balance depreciation A building...Ch. 9 - Revision of depreciation Equipment with a cost of...Ch. 9 - Capital and revenue expenditures On February 14,...Ch. 9 - Sale of equipment Equipment was acquired at the...Ch. 9 - Prob. 7BECh. 9 - Prob. 8BECh. 9 - Fixed asset turnover ratio Select financial...Ch. 9 - Costs of acquiring fixed assets Melinda Stoffers...Ch. 9 - Prob. 2ECh. 9 - Prob. 3ECh. 9 - Nature of depreciation Tri-City Ironworks Co....Ch. 9 - Straight-line depreciation rates Convert each of...Ch. 9 - Straight-line depreciation A refrigerator used by...Ch. 9 - Depreciation by units-of-activity method A...Ch. 9 - Depreciation by units-of-activity method Prior to...Ch. 9 - Depreciation by two methods A Kubota tractor...Ch. 9 - Depreciation by two methods A storage tank...Ch. 9 - Partial-year depreciation Equipment acquired at a...Ch. 9 - Revision of depreciation A building with a cost of...Ch. 9 - Prob. 13ECh. 9 - Prob. 14ECh. 9 - Prob. 15ECh. 9 - Capital expenditure and depreciation Willow Creek...Ch. 9 - Entries for sale of fixed asset Equipment acquired...Ch. 9 - Disposal of fixed asset Equipment acquired on...Ch. 9 - Prob. 19ECh. 9 - Kleen Company acquired patent rights on January 10...Ch. 9 - Prob. 21ECh. 9 - Prob. 22ECh. 9 - Asset traded for similar asset A printing press...Ch. 9 - Prob. 24ECh. 9 - Prob. 25ECh. 9 - Prob. 26ECh. 9 - Prob. 1PACh. 9 - Comparing three depreciation methods Dexter...Ch. 9 - Depreciation by three methods; partial years...Ch. 9 - Depreciation by two methods; sale of fixed asset...Ch. 9 - Transactions for fixed assets, including sale The...Ch. 9 - Prob. 6PACh. 9 - Prob. 1PBCh. 9 - Comparing three depreciation methods Waylander...Ch. 9 - Depreciation by three methods; partial years...Ch. 9 - Depreciation by two methods; sale of fixed asset...Ch. 9 - Transactions for fixed assets, including sale The...Ch. 9 - Prob. 6PBCh. 9 - Compare Amazon.com to Netflix Amazon.com, Inc....Ch. 9 - Prob. 2MADCh. 9 - Prob. 3MADCh. 9 - Compare Fed Ex and UPS FedEx Corporation (FDX) and...Ch. 9 - Prob. 5MADCh. 9 - Revising depreciation estimates Hard Bodies Co. is...Ch. 9 - Communication Godwin Co. owns three delivery...Ch. 9 - Prob. 4TIF
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Similar questions
- Which one of the following statements is true? a. Financial statement readers cannot determine whether the depreciation method used by a company is appropriate. b. Financial statement readers can determine the useful lives of assets depreciated during the reported period. c. Financial statement readers cannot determine the depreciation expense for the reported period d. Financial statement readers can accurately estimate the effect an alternative depreciation method would have on income.arrow_forwardRespond to the questions related to fixed assetsarrow_forwardDepreciation expense is: Only an estimate. An exact calculation prepared by an appraiser. Not to be calculated unless the exact life of an asset can be determined. To be determined for all assets owned by a company.arrow_forward
- Explain the concept of impairment in accounting, and discuss the indicators and procedures used to assess impairment of long-lived assets.arrow_forwardWhich of the following must be recorded in the accounting records when an asset that is NOT held for sale is derecognized? A Removal of the asset. B Gain or loss on derecognition. C All of the above items must be recorded in the accounting records. D Depreciation up until the date of derecognition.arrow_forwardWhich of the following would NOT be reflected in the income statement? Group of answer choices A.Correction of an error in previously issued financial statements B.Loss on disposal of a segment of a business C.Cumulative effect of a change in depreciation methods D.An extraordinary itemarrow_forward
- Which of the following techniques can be used by management to overstate long-lived assets? *A. All of the aboveB. Record existing assets at amounts excluding incidental costsC. Include fictitious assets on the financial statementsD. Expense transactions that should be capitalized.arrow_forwardWhen an asset is sold, the accumulated depreciation account for the asset must be closed off to the asset realisation account. A. True B. Falsearrow_forwardAlso known as the historical cost principle, ________ states that everything the company owns or controls (assets) must be recorded at their value at the date of acquisition. A. revenue recognition principle B. expense recognition (matching) principle C. cost principle D. full disclosure principlearrow_forward
- Which of the following statements about capitalizing costs is correct? A. Capitalizing costs refers to the process of converting assets to expenses. B. Only the purchase price of the asset is capitalized. C. Capitalizing a cost means to record it as an asset. D. Capitalizing costs results in an immediate decrease in net income.arrow_forwardWhy depreciation on fixed assets is not recorded in receipts and Payment Account?arrow_forwardWhich of the following items are added back to Net Income when the Indirect method is being used to prepare the Operating Activities section? Please mark the correct answers and leave the incorrect answers unmarked Depreciation expense Accumulated depreciation Bad Debt Expense Accounts Receivable balance Loss on sale of equipment Gain on sale of equipmentarrow_forward
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