For accounting​ purposes, depreciation refers to the process of​ ________.         A. estimating an​ asset's current market value   B. allocating the cost of a plant asset to expense over its useful life   C. recording the decline in the market value of an asset to its book value   D. determining the selling price of an asset

Q: When the useful life of an asset is more accurately defined in terms of how much it is used rather…

A: Depreciation is a reduction in the value of assets due to the usage of that asset. We can evaluate…

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: The depreciation method in which the depreciable cost of an asset is apportioned equally over its…

A: The depreciation is a decline in the value of tangible assets over their useful life. it is a…

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: Accumulated Depreciation a.is the same as Depreciation Expense b.is used to show the amount of cost…

A: Whenever fixed assets are purchased in business, then their value decreases over life of the asset.…

Q: Depreciationa. is calculated by the department that uses the fixed asset.b. allocates the cost of…

A: Definition: Fixed Assets: It refers to the long-term assets having a useful life of more than a year…

Q: Under the cost model, subsequent to initial recognition as an asset, an item of property, plant, and…

A: Cost model says that all property, plant and equipment of the business should be recognised at cost…

Q: Why are the costs of plant/long term assets recovered through depreciation vs. expensed out during…

A: Introduction: Depreciation refers to two aspects of the same concept: first, the actual decrease in…

Q: Depreciation is the process of allocating the cost of a plant asset to expense in the accounting…

A: Plant means the fixed assets which is used in business for furtherance of business and not held for…

Q: Which depreciation method results larger depreciation expense in the early years of an asset's life…

A: Which depreciation method results larger depreciation expenses in the early years of an asset's life…

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

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

Q: Depreciation: A. Measures the decline in market value of an asset. B. Measures physical…

A: Depreciation is the wear and tear of an asset that is expensed over the useful life of the asset.…

Q: The depreciation method in which the depreciable cost of an asset is apportioned equally over its…

A: a) in straight line method of depreciation  Depreciation will be apportioned equally over its life…

Q: A gain or loss on disposal of a plant asset is determined by comparin O replacement cost of the…

A: In the business world, the term "book value" was coined to indicate the current value of a…

Q: Which one of the following items is not a consideration when recording periodic depreciation expense…

A: Depreciation is the reduction in value of asset over the period of time. It is due to the normal…

Q: The carrying amount of an item of property, plant and equipment that is subsequently accounted for…

A: The answer is option (3.) [ i.e, the historical cost less any accumulated depreciation and any…

Q: We normally record a long-term asset at the a. Cost of the asset only.b. Cost of the asset plus all…

A: We normally record a long-term asset at the cost of the asset plus all costs necessary to get the…

Q: The estimated economic life of an asset is also known as ________.     A. residual value.     B.…

A: Estimated life refers to the estimated economic life or useful life which means the assets will be…

Q: The write-off of the cost of an intangible asset is called a.deterioration. b.functional…

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

Q: If a business changes the estimated useful life or estimated residual value of a plant asset, what…

A:

Q: For financial accounting purposes, depreciation expense represents the decreasein an asset's fair…

A: "Since you have asked multiple questions, we will solve first question for you. If you want any…

Q: The book value of a plant asset is the difference between the   Question 20 options:   replacement…

A: According to the IFRS - property, plant & equipment, Non-current asset is shown as net of…

Q: What is book value (or net book value) of plant and equipment and on which financial statement is it…

A: Book value means the value at which it is shown in financial statements.

Q: In all cases, net property, plant and equipment (PP&E) should be calculated as the gross PP&E less…

A: Solution: Gross PP &E  = Cost of purchase of PPE Accumulated depreciation = Depreciation…

Q: The terms depreciation, depletion, and amortization all refer to the process of allocating the cost…

A: Depreciation: It refers to the reduction in the monetary value of fixed tangible assets over its…

Q: Which method of deprecaution is used when the cost of an asset is written off in equal amounts over…

A: There are number of methods of depreciation.

Q: A depreciation method that charges a varying amount to expense for cach period of an asset's useful…

A: Introduction: Depreciation: Decreasing value of fixed assets over its useful life period. Example:…

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: When Accumulated depreciation account is credited with the amount of depreciation a. The cost of…

A: When Depreciation on Fixed Assets cumulated every year and credited to Accumulated Depreciation It…

Q: A gain or loss on disposal of a plant asset is determined by comparing the O a) book value of the…

A: Book Value of the asset refers to the current value of the asset computed by deducting the…

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: Depreciation is the allocation of the cost of a plant asset over its useful life in a rational and…

A: Depreciation is charged on assets for reducing their value which is a result of the use of the asset…

Q: Which of the following statements is the assumption on which straight line depreciation is based?…

A: Straight line method is the most simplest method of charging depreciation on Plant, Machines,…

Q: Which of the following costs are reported on a company’s income statement and balance sheet? Select…

A: Solution: "Cost of goods sold; Accumulated depreciation" are reported on a company’s income…

Q: Which of the following is true? a.If using the units-of-output method, it is possible to depreciate…

A: Depreciation is an expense which is charged on fixed asset over the useful life of an asset, there…

Q: In calculating depreciation, both plant asset cost and useful life are based on estimates.

A: Answer

Q: Which of the following statements are true about the revaluation model per IAS 16 Property, Plant…

A: IAS 16 Property, Plant, and Equipment specify the treatment of the tangible fixed assets of the…

Q: Explain the following terms: (a)Depreciation, (b)accumulated depreciation, (c)book value, (d)fixed…

A: Solution- a) Depreciation- Depreciation refers to an indirect and explicit cost that a company…