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- Depreciation expense under the invenroty system is a. Based on cost minus residual value b. Basically a FIFO approach to depreciable asset accounting c. The result of applying a depreciation rate to the original cost d. A measure of the change in the value of the depreciable assetThe depreciation method that applies a constant percentage to depreciable cost in calculating depreciation is Select one: a. none of these. b. straight-line. c. declining-balance. d. units-of-activity.Which one of the following methods charges depreciation at a rate double to the one used in straight line method?
- Q. What are the effects of depreciation on the profit and loss account and balance sheet?Which one of the following methods charges depreciation at a rate double to the one used in straight line method? Select one: a. Straight line method b. Declining balance method c. None of the methods d. Units of activity methodDemonstrates the difference between depreciation costs as expenses and the cash flow generated by the purchase of a fixed asset? Give an example?
- Depreciation is a process of Select one Oa. asset valuation D. cost allocation C Cost accumulation. d. asset devaluation. e. The answer does not exstThe depreciation expense is generally estimated based on some assumption such as percentage of sales or from a depreciation schedule. True FalseDepreciation is a process that involves:a. Increasing the value of assetsb. Distributing the cost of an asset over its useful lifec. Eliminating the need for financial statementsd. Reducing the value of liabilities
- 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.Determine the following; A.)Depreciation rate, in %. B.)Value of A. C.)Value of B.When is accumulated depreciation reduced to zero? Explain and provide examples for each element (Asset & Liability)
