Which of the following is true regarding special issues in accounting for long-term assets? A. An assets
Question:
Which of the following is true regarding special issues in accounting for long-term assets?
A. An asset’s useful life can never be changed.
B. An asset’s salvage value can never be changed.
C. Depreciation expense calculations may need to be updated using new and more accurate estimates.
D. Asset values are never reduced in value due to physical deterioration.
Step by Step Answer:
Step 1 To determine Introduction Longterm assets are the assets which are used in business ...View the full answer
Principles Of Accounting Volume 1 Financial Accounting
ISBN: 9781593995942
1st Edition
Authors: Mitchell Franklin, Patty Graybeal, Dixon Cooper, OpenStax
Related Video
Depreciation of non-current assets is the process of allocating the cost of the asset over its useful life. The cost of the asset includes the purchase price, any additional costs incurred to bring the asset to its current condition and location, and any other costs that are directly attributable to the asset. The useful life of the asset is the period over which the asset is expected to be used by the company. To calculate the depreciation, companies use different methods such as straight-line, declining-balance, sum-of-the-years\'-digits, units-of-production, and group depreciation. The chosen method will depend on the type of asset, the company\'s accounting policies, and the accounting standards that are applicable. The straight-line method allocates an equal amount of the asset\'s cost over its useful life, while the declining-balance method calculates depreciation at a fixed rate, typically double the straight-line rate, but the amount of depreciation decreases over time. The sum-of-the-years\'-digits method is similar to the declining-balance method, but the rate of depreciation is calculated using a fraction that is based on the useful life of the asset. It\'s important to note that the depreciation expense will be recorded on the company\'s income statement and the accumulated depreciation will be recorded on the company\'s balance sheet. This will decrease the value of the asset on the balance sheet over time.
Students also viewed these Business questions
-
Which of the following is true regarding the weighted-average cost of capital? A, The book value of the components of capital should always be used to calculate the weighted-average cost of capital....
-
Which of the following is true regarding SEPs? a. The plan cannot discriminate in favor of highly compensated employees. b. Deductible contributions cannot exceed the lower of 15% of the employees...
-
Which of the following is true regarding SEPs? a. The plan cannot discriminate in favor of highly compensated employees. b. Deductible contributions cannot exceed the lower of 15% of the employees...
-
The Best Buy Co. Inc. 10-K report has the following footnote related to leasing activities. The future minimum lease payments under our capital and operating leases by fiscal year (not includ- ing...
-
Why did Warner Brothers make a mistake by waiting until the filming of Analyze This was almost finished before negotiating with Tony Bennett to perform in the final scene?
-
The chemistry of derivatives of trans-decalin is of interest because this ring system is part of the structure of steroids. Make models of the brominated systems (i and ii) to help you answer the...
-
Match the following concepts: goal, process, function, scenario, business system, information system, grocery store, check-out system, actors, role.
-
There are two players. Each player has to write down a real number greater than or equal to 1; thus the strategy sets are S S = [1,00). Payoffs are as follows (x is the number written by Player 1 and...
-
ces On January 1, 2024, the Mason Manufacturing Company began construction of a building to be used as its office headquarters. The building was completed on September 30, 2025. Expenditures on the...
-
Create a star schema for this case study. How did you handle the time dimension? Fitchwood Insurance Company, which is primarily involved in the sale of annuity products, would like to design a data...
-
Garcia Co. owns equipment that costs $150,000, with accumulated depreciation of $65,000. Garcia sells the equipment for cash. Record the journal entry for the sale of the equipment if Garcia were to...
-
Montezuma Inc. purchases a delivery truck for $20,000. The truck has a salvage value of $8,000 and is expected to be driven for ten years. Montezuma uses the straight-line depreciation method....
-
On December 13, 2001, the Associated Press reported a story entitled Study: American kids getting fatter at disturbing rate. By 1998, nearly 22 percent of black children ages 4 to 12 were overweight,...
-
Describe the accessing protocol of a queue at the abstract level.
-
The article "Weekly Personal Ozone Exposure and Respiratory Health in a Panel of Greek Schoolchildren" (A. Karakatsani, E. Samoli, et al., Environmental Health Perspectives, 2017, online) describes a...
-
A stack of integer elements is implemented as an array. The index of the top element is kept in position 0 in the array, and the stack elements are stored in stack[1].. stack[stack[0]}. 1. How does...
-
Rewrite SortedType (linked) using templates.
-
Describe the accessing protocol of a stack at the abstract level.
-
January 31, 2014, Phoenix, Inc. acquired all of the outstanding common stock of Spark Corporation for $400 million cash plus 25 million shares of Phoenix' $10 par value common stock having a market...
-
SBS Company have received a contract to supply its product to a Health Care Service Hospital. The sales involve supplying 1,250 units every quarter, the sales price is RM 85 per unit. The Client...
-
Phil, a cash-basis taxpayer, sells the following marketable securities, which are capital assets during 2016. Determine whether the gains or losses are long-term or short-term. Also determine the net...
-
Sylvia, a dentist with excellent skills as a carpenter, started the construction of a house that she planned to give to her son as a surprise when he returned from Afghanistan, where he is serving in...
-
Daniel receives 400 shares of A&M Corporation stock from his aunt on May 20, 2016, as a gift when the stock has a $60,000 FMV. His aunt purchased the stock in 2006 for $42,000. The taxable gift is...
-
11 in. 11 in. 3 in. 11 in. 3 in. Determine the surface area and volume of the composite object above to the nearest unit. A lin V= in 3
-
1. The vibrations in a struck bar of length are modelled by the equation (assuming constant width and small deflections) Ju Itz (x, t) + EI au (x,t) =0, 0
-
If the target food cost percent is 33%, what would the selling price of macaroni and cheese be if the food cost was $1.25 per portion?
Study smarter with the SolutionInn App