O Changes the character of a gain. d. Depreciation expense does not measure changes in market value. It can be accomplished with sophisticated electronic equipment.c. Which of the following statements is true of vibrations? B. For multiple-choice and true/false questions, simply press or click on what you think is the correct answer. Commercial real estate buildings are depreciated over 39 years using accelerated depreciation… Company X is going to retire equipment that is fully depreciated with Thornton Industries purchased a machine for $45,000 and is BELOW IS THE CORRECT ANSWER: C. Unlike U.S. GAAP, under IFRS each component of an asset must be. Depreciation is a process by which a business sets aside cash to replace assets as needed. Which of the following is not a section 1245 asset if held for more than one year? Neither ultrasonic nor infrasonic vibrations can be heard by humans. Which of the following statements is TRUE regarding depreciation expense? D. Management must know the exact life of an asset in order to calculate an acceptable depreciation expense. Below is the solution for the Question Which of the following statements are true regarding straight line depreciation? Which of the following is statements is false regarding depreciation recapture under § 1250? None of the above is true. Which of the following statements is true regarding depreciation? Which of the following is not one of the factors used to determine depreciation expense. True False 2. A. C) Depreciation expense does not measure changes in market value. Depreciation is a process by which a business sets aside cash to replace assets as needed. Which is NOT true regarding depreciation? a. D. Infrasonic vibrations are used in sonar equipment and to detect flaws in steel castings. Depreciation expense reflects the decrease in market value each year. Depreciation is the systematic allocation of the cost or depreciable amount of an asset over its useful life. E. None of the above. B. No matter when equipment is purchased during the month, it is considered to have been purchased mid-month for MACRS depreciation purposes. Computer equipment also becomes obsolete in a span of few years due to technological developments. D. Only applies to ordinary assets. Which of the following is not true regarding depreciation? Solution for Which of the following statements is true regarding depreciation methods? a. Which of the following statements is true with regard to depreciation expense? 6.Which of the following statements about property, plant, and equipment and depreciation is true? Changes the character of a loss. B. 12. Depreciation is a process of valuation. 4. Depreciation recognizes normal wear and tear as the asset is used. Which of the following statements is true regarding depreciation methods? d. Accumulated depreciation is the portion of an asset's cost that has already been recorded as an expense. A. B. Ultrasonic vibrations have a frequency lower than the range for normal hearing. Restaurants depreciate the cost of the equipment over all the years of its useful life. It is a method that is calculated by subtracting the salvage value of the asset from the purchase prices, and then … The depreciation method selected should reflect the expected pattern of consumption of the future economic benefits embodied in the asset. 2. Straight-line depreciation is the only acceptable method. Challenge For fill-in-the-blank questions press or click on the blank space provided. A major control procedure related to plant and equipment is a budget for depreciation. B)expenses will be higher and net income lower if the grant is accounted for as an adjustment to the asset. All of these choices are correct. 1. it provides funds for the replacement of the asset through tax savings over the assets life. a. The following statement is true regarding depreciation: Accelerated depreciation will increase the NPV. A. Factory wages is a product cost and direct material is a period cost. c. Depreciation is an allocation not a valuation method. All of the above are true.e. The balance in the Accumulated Depreciation account represents the total amount recorded as Depreciation Expense from the time the asset was acquired. Which of the following statements is true? Consider a piece of equipment that costs $25,000 with an estimated useful life of 8 years and a $0 salvage value. A. Record the journal entry for the sale of the equipment if Garcia were to sell the equipment for the following amounts: … Using reducing balance method to depreciate computer equipment would ensure that higher depreciation is charged in the earlier years of its operation. The auditors' approach to the audit of property, plant and equipment largely results from the fact that relatively few transactions occur. Which of the following is true regarding the alternative ways to apply the income approach to accounting of resources acquired through government grants? C. Depreciation is only recorded at the end of a year and never over a shorter time period. 19. A)expenses will be higher and net income lower if the grant is recorded as deferred revenue. 53. 1. Here’s the answer for Which of the following statements are true regarding straight line depreciation? Depreciation is a process of valuation. A)Depreciation recapture that existed at the death of the taxpayer carries over to the beneficiaries. C. Changes the amount of a gain. Example. Depreciation is the process of determining the value of accounts receivable which will be collected in the current period. Depreciation allocates the cost of a fixed asset over its estimated life. If you have difficulty answering the following questions, learn more about this topic by reading our Depreciation (Explanation). Businesses with a net loss in a given tax year qualify to carry-forward the Bonus Depreciation to a future year C. Bonus Depreciation only covers new equipment D. a. In straight-line depreciation, the expense amount is the same every year over the useful life of the asset. b. Which of the following is true regarding depreciation recapture? A) Depreciation expense reflects the decrease in market value each year. Depreciation allows businesses of any kind that purchase equipment or infrastructure, such as a building or warehouse, to spread out the loss of value of the life of the asset rather than having to take the cost as an expense all at once for tax purposes. LO 11.5Garcia Co. owns equipment that costs $150,000, with accumulated depreciation of $65,000. C. The frequency of infrasonic vibrations is much too high to be heard by humans. Which of the following statements is most likely correct regarding the depreciation of property, plant and equipment under IFRS and U.S. GAAP? Townson’s fixed asset turnover ratio has decreased between Year 1 and Year 2. a) Accelerated depreciation will increase the NPV. depreciated separately.. Which of the following is true regarding depreciation recapture? Depreciation is the process of recognizing revenues earned within the current accounting period. Property, Plant, and Equipment: Depreciation and Depletion True / False Questions 1. It generates an after-tax cash outflow. Depreciation is the process of allocating the costs of long-term assets over their expected useful life. It is the ability to change production rates with little penalty in time cost or customer value.b. B. The Accumlated Depreciation account is a cash fund to be used to replace long-lived assets. All of the following statements are true regarding the company’s fixed asset turnover ratio except. Which of the following statements is true regarding the Accumulated Depreciation account? Depreciation is an exact calculation of the decline in value of an asset. Depreciation Formula for the Straight Line Method: Depreciation Expense = (Cost – Salvage value) / Useful life . b) Accelerated depreciation will increase the Payback. It may involve modular movable even cheap equipment.d. It is a method that is calculated by subtracting the salvage value of the asset from the purchase prices, and then dividing this number by the estimated useful life of asset. Computer equipment for instance has better functionality in its early years. O Only applies to ordinary assets. Bonus Depreciation is useful to very large businesses spending more than the Section 179 spending limit B. Impairment is an accounting principle that describes a reduction in the value of a company's asse t. Impairment is a significant and prolonged decline in value. D. It generates a before-tax cash inflow. 3 Multiple Choice nts mo 00:32:35 Changes the character of a loss. A. Accelerated depreciation will decrease IRR. A company should use the depreciation method that best matches expense recognition with the use of the asset. D) Depreciation is an allocation not a valuation method. Which of the following statements are true regarding straight line depreciation? Sales commission is a product cost and factory rent is a period cost. Multiple Choice. Which of the following is true regarding the concept of flexibility?a. Garcia sells the equipment for cash. 3. A. a.The use of a declining balance method of depreciation will produce lower depreciation charges in the early years of an asset's life compared to the straight-line depreciation method. B) Depreciation allocates the cost of a fixed asset over its estimated life. Accelerated depreciation will increase the Payback. Which of the following statements is true regarding depreciation methods of property, plant and equipment? b. Accelerated depreciation changes the total amount of depreciation taken over the life of the asset a.The use of a declining balance method of depreciation will produce… Which of the following statements is true? C. It generates an after-tax cash inflow. A. It generates a before-tax cash outflow. True False 3. A. O Changes the amount of a gain. Depreciation is only an estimate of the decline in value of an asset. Accelerated depreciation will decrease NPV. Sales commission is a product cost and depreciation on factory equipment is a product cost. B)Recapture is generally not required upon the gift of § 1250 property. E. It will always cause the … c. Accumulated depreciation represents a growing fund of cash. How many of the following statements regarding goodwill are true? None of the choices are correct. b. Changes the character of a gain. Factory maintenance is a product cost and sales commission is a period cost. Which of the following is true about the MACRS depreciation system? 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Which of the following statements is true regarding depreciation methods normal wear and as. Formula for the straight line method: depreciation expense of resources acquired through grants.
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