When an asset is held for sale: Question 10 options: the asset is remeasured at the lower of carrying (book) value and fair value less costs to sell. it must related to discontinued operations. the company continues to record depreciation on the asset. the asset is remeasured at the lower of fair value and carrying (book) value.
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When an asset is held for sale:
Question 10 options:
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the asset is remeasured at the lower of carrying (book) value and fair value less costs to sell. |
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it must related to discontinued operations. |
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the company continues to record depreciation on the asset. |
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the asset is remeasured at the lower of fair value and carrying (book) value. |
The matching principle is best demonstrated by:
Question 11 options:
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measuring expenses correctly. |
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not recognizing any expenses until some revenue has been received. |
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recognizing prepaid rent as revenue. |
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associating effort (expenses) with accomplishment (revenues). |
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- Which of the following statements is not correct? Multiple Choice The cost less the salvage value equals the depreciable base of a long-term asset. Uncollectible Accounts Expense is a contra asset account. If a firm records prepaid expense items in an expense account when they pay for them, their adjustment at the end of the period to record the unexpired portion would include a debit to an asset account and a credit to an expense account. Each adjustment for an accrued expense includes a credit to a liability account.Which of the following statements is correct with respect to the sale of a depreciable asset? Multiple Choice A gain occurs when the selling price exceeds book value. A sale for a gain results in a decrease in total assets. A sale for a loss results in an increase in total assets. A loss occurs when the selling price is more than book value.1. A company is deciding whether to exchange an old asset for a new asset. Within the context of the exchange decision, and ignoring income tax considerations, the undepreciated book value of the old asset would be considered a(an) Sunk cost Irelevant cost No No Yes No No Yes d. Yes Yes 2. Expected future costs that will differ among alternatives a. Opportunity cost. b. Relevant costs. c. Sunk cost. d. Out-of-pocket costs.
- For financial accounting purposes, depreciation expense represents the decreasein an asset's fair market value. Select one: True False The total amount of depreciation taken over the life of a depreciable asset should be less if the double-declining balance depreciation method is used than if the straight-line method is used. Select one: True FalseTrue or False 1. When there is a change in the plan to sell a held for sale asset, that asset is reclassified back to its previous classification and measured at its carrying amount before it was classified as held for sale, adjusted for any depreciation, amortization or revaluation that would have been recognized had the asset not been classified as held for sale. 2. Profit from continuing operation does not include extraordinary items, discontinued operations, or cumulative effects of changes in accounting principles. 3. A component of an entity comprises operations and cash flows that can be clearly distinguished, operationally and for financial reporting purposes, from the rest of the entity. 4. A component of an entiry can be cash generating unit or group of cash generating units. Use the following information for the next two questions: An entity, a brewer of beer, has three major product lines - Brand A, Brand B and Brand C. Each product line comprises…1.) If a newly acquired asset is ‘held for sale’, the asset or disposal group will be measured at: A. Cost B. The lower of “Cost” and “Fair value, less costs to sell’ C. The higher of “Cost” and “Fair value, less costs to sell’ D. Fair value, less costs to sell 2.) An adjustment, to the carrying amount of a non-current asset that ceases to be classified as ‘held for sale’, is recorded in: A. Income from continuing operations B. Equity C. Income from discontinued operations D. Secret
- Depreciation under Diminishing Balance Method is calculated on? A. Scrap Value B. Book Value C. Cash Account D. Repair I will downvote for sure if u answer Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.In a replacement analysis, the market value of the currently owned asset a. does not impact the cash flows of the replacement asset(s) in the opportunity cost approach b. does not impact the cash flows of the current asset in the cash flow approach if the current asset is kept c. is treated as a salvage value for the current asset in the cash flow approach if the current asset is kept d. is added to the first cost of the replacement asset(s) in the opportunity cost approach.How does the adjustment for depreciation differ from other deferral adjustments? Multiple Choice The depreciation adjustment results in an increase to a long-lived asset account, while the other deferral accounts References The depreciation adjustment uses a contra-asset account rather than reducing the asset account directly The depreciation adjustment increases a liability account rather than reducing an asset account directly The depreciation adjustment is not a deferral adjustment, but rather on accrual adjustment.
- Answer to following multiple choice questions? 1. Leased asset status is Amana(Trust) in the hand of the lessee. Any damage to leased asset caused by lessee's negligence or mistake he will be responsible for this damage a. True b. False 2. Which of the following statements about diminishing Musharakah is correct? a. Rental payments remain constant while Unit sale price decreases b. Rental payments decrease while Unit Sale Price remains constant c. Both rental payments and Unit sale price decrease d. Rental payment decrease while unit sale price increase. 3. If A and B enter into a Musharakah contract and it is agreed between them that A will get 15% of his investment, this contract is valid. a. True b. False 4. Mr. Saeed sold his car for PKR 1.5 million which he had purchased for PKR 1.6 million. He mentioned the details about it to the counterparty including total costs (PKR 1.6 mn). This type of sale is known as Murabaha. a. True b. False 5. Which of…Record the entry to adjust asset values to fair value. Record the entry to reduce additional paid in capital balance to correct figure, to close out gain account, and to eliminate deficit. How do I do this? What part of this is the adjust asset value and what part is the deficit entryStatement 1: In impairment loss, the discount rate being used is the current pretax rate that reflects the current assessment of the time value of money and the risks specific to the asset. It shall not reflect risk for which the future cash flow estimates have already been adjusted.Statement 2: In computing for impairment of intangible asset with indefinite life, future cash flows are divided by the risk-adjusted discount rate to get the present value. Statements 1 and 2 are true. Statement 1 is true while Statement 2 is false. Statement 1 is false while Statement 2 is true. Statements 1 and 2 are false.