An estimate of how an asset will be used up over its useful life is known as what?   a. Depreciation rate   b. Impairment value   c.  Useful life   d. Salvage value

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: An estimate of a plant asset's value at the end of its useful life, is knowing as. Select one: a.…

A: An estimate of a plant assets value at the end of its useful life is knowing as Residual value.

Q: Which of the following is considered when depreciating an asset under the cost model? The cost of…

A: Depreciation of Assets The purpose of calculating the depreciation of assets to determine the actual…

Q: Which of the following events is most appropriately recorded as reduction to accumulated…

A: Answer -  An improvement that extends an asset's useful life is most appropriately recorded as a…

Q: The difference between cost of the asset and residual value is known as a . Depletion b . Salvage…

A: Depreciation: Depreciation means the reduction in the value of an asset over the life of the assets…

Q: Statement 1: The cost of an asset, or other amount substituted for cost, less its residual value is…

A: An asset is depreciable till the level of residual value only. When the WDV of an assets comes to…

Q: An estimate of how an asset will be used up over its useful life is known as what?

A: This question tells about you have a good idea of how much of an asset you'll utilize throughout…

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: Residual value is: A. Also called residual value. B. Also called scrap value. C. An estimate of the…

A: The depreciation expense is charged on fixed assets as reduced value of the fixed asset with usage…

Q: Depreciation is: Oa. the loss in market value of an asset. Ob. the allocation of a long-term asset's…

A: Depreciation is an accounting method for reducing the total amount of a tangible or physical asset…

Q: What is the systematic periodic transfer of the cost of a fixed asset to an expense account during…

A: It is a measure of the wearing out, consumption or other loss of value of depreciable asset arising…

Q: Which of the following statements if not true? a. Depreciation is the process of allocating the…

A: Residual value is also considered as salvage value. it is an estimation of remaining value assets at…

Q: The cost of an asset that is subject to depreciation is called a.depreciable cost. b.trade-in…

A: Depreciable cost is that portion of cost of asset which can be depreciated. Trade in value relates…

Q: The cost of fixed assets is distributed over the asset's estimated lifetime. This spreading of costs…

A: Fixed Asset: It is a long-term asset and is tangible in nature. Such assets are used by the firm to…

Q: evising an estimate of the useful life or salvage value of a plant asset is referred to as a change…

A: Business Environment is Very Complex Sometimes Assets Life and Salvage Changes and that change is…

Q: Which of the following depreciation methods will result in the most depreciation expense over the…

A: Depreciation is method to allocate the cost of the Assets over its useful life

Q: When an impairment loss occurs, the carrying amount of the asset should be reduced to its   a) ©…

A: Impairment: It implies to an increase in the fixed asset's carrying value in relation to the price…

Q: ‘carrying value’ of a depreciable asset is the difference between

A: Carrying value of an asset gives value of Company's asset as on given date after provision of wear…

Q: Which of the following is correct when recording the disposal of equipment for a gain? Group of…

A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…

Q: Preparing an asset for sale after its useful life is a: a. Maintenance support cost b. Production…

A: Introduction: Cost Accounting: Cost Accounting is for Internal users. For determining costs of the…

Q: The “carrying value” of a long term asset on the Balance Sheet represents: a. The net book value of…

A: Correct answer-option a:The net book value of the asset

Q: The value of the asset at the end of the useful life is called O a. Book value O b. Useful life O c.…

A: Option A-Book Value: It is the Value of Assets which shown in the books after depreciation.This…

Q: Question 3: Which of these is not an estimate used to determine depreciation expense? Answer: A. B.…

A: Depreciation is of revenue nature.It is needed to be charged on asset over life of the asset.It is…

Q: The book value of an asset is defined as ____________________. a. Estimated fair market value b.…

A: Book Value of an asset is the measure of the historical cost of an asset decreased by the total…

Q: Tangible assets are first recorded at: Multiple Choice cost minus residual (or salvage) value. the…

A: The tangible assets should be recorded at cost and it includes all the expenses which are incurred…

Q: Which of the following best describes the higher of an asset's net selling price and its value in…

A: Asset's net selling price is the amount obtainable from the sale of assets less any disposal cost.…

Q: hich of the following statement best describes depreciation? a. It is a means of spreading the…

A: Explanation:Depreciation isn't the result of fluctuations within the value of fixed assets since,…

Q: Depreciation is a process of: a. Asset devaluation b. Cost accumulation c. Cost allocation d.…

A: Depreciation is the process of cost allocation of an asset. It is made due to the wear and tear and…

Q: Salvage value is: O Also called residual value O Also called scrap value O An estimate of the…

A: Solution: salvage value is the value of an asset remaining after it has been fully depreciated. It…

Q: Depreciation of an asset based on the number of hours of usage is a(n): a. Time-based method b.…

A: Depreciation is a non cash expenses which is charged for reduction in value of asset over the useful…

Q: What refers to the present worth of cost associated with an asset for an infinite period of time?…

A: Payback period is the time period of recovery of initial cash outflow from the cash flows of the…

Q: When considering the replacement of old equipment, which of the following item is relevant?…

A: Relevant cost refers to the cost that affects the cash flows estimated for decision making.

Q: All of the following factors are considered in determining the useful life of an asset except:…

A: The question is related to Depreciation Accounting. The factors considered for depreciation are as…

Q: Th e valuation technique under which assets are recorded at the amount that would be received in an…

A: The assets of a business can be recorded by valuation using current cost basis or the market value…

Q: A gain or loss on the sale of a plant asset is determined           by comparing the:       A.…

A: Solution:- A gain or loss on the sale of a plant asset is determined as follows under:-

Q: The difference between the purchase cost of an asset and its value at the end of the life is known…

A: Introduction: Depreciation: Decreasing value of fixed assets over its useful life period called as…

Q: Blueprint Connection: Depreciation Methods Depreciation is the process of allocating the cost of an…

A: Depreciation is the wear and tear of an asset. Depreciation is an expense that is allocated based on…

Q: Depreciation expense under the invenroty system is a. Based on cost minus residual value b.…

A: Depreciation = (Cost - Residual value) / Life of asset

Q: What is the difference between the cost of a fixed asset and its accumulated depreciation called?…

A: Accumulated depreciation is the total of all the depreciation that has been charged to the asset…

Q: What is the effective life of an asset?   a. The total period of ownership of the asset,…

A: The resources owned by the organization to generate revenues are referred to as the assets. They can…

Q: Asset   End of year Amount Appropriate Required Return D   1 through 5 $1,500 12%     6…

A: Present value of annuity is the current value of the future payments that are calculated using the…