Expenditures capitalized as long-lived assets primarily include those expenditures that:are made for normal repairs to maintain the usefulness of the asset over a number of years.are for items that have actually a physical life of even more than a year, regardless of their expense.are material in amount and that have actually an economic benefit to the entity just in the current year.are product in amount and that have an financial benefit to the entity that extends past the present year.

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are product in amount and that have actually an economic advantage to the entity that extends beyond the present year
The entry to record depreciation expense:rises a contra asset and decreases net earnings.decreases a contra ascollection and also decreases net earnings.decreases functioning funding and decreases net income.decreases an asset and boosts a contra asset.
The net book value of a depreciable asset is:the fair value of the ascollection.the amount for which the asset have to be insured.the difference between the asset"s price and also accumulated depreciation.the distinction in between the asset"s cost and also depreciation price.
When an increased depreciation approach is used to calculate depreciation expense:the net book value of the asset halfmethod via its valuable life will certainly be less than if straight-line depreciation is supplied.the net book value of the asset at the finish of its useful life will be much less than if straight-line depreciation is offered.depreciation price will be less in the early on years of the asset"s life than if straight-line depreciation is supplied.the collected depreciation account balance will certainly boost by a larger amount in the last fifty percent of an asset"s life than if straight-line depreciation is supplied.
the net book worth of the asset halfmeans through its useful life will certainly be less than if straight-line depreciation is used.
Goodwill certainly is an asset that arises because the present value of an acquired company"s estimated future earnings, discounted at the acquiring firm"s ROI:is less than the fair worth of the net assets of the obtaining agency.is much less than the fair worth of the net assets of the acquired firm.is more than the fair value of the net assets of the obtained firm.is even more than the fair worth of the net assets of the acquiring company.
The intangible ascollection goodwill:represents the management team"s assessment of its value to the firm.may aincrease when one agency purchases another agency.arises because the fair worth of a company"s assets is greater than price.every one of the over are correct.
Expenditures capitalized as long-lived assets generally incorporate those expenditures that:are material in amount and that have an financial benefit to the entity just in the current year.are material in amount and that have an financial advantage to the entity that exhas a tendency beyond the current year.are produced normal repairs to maintain the usefulness of the asset over a number of years.are for items that have a physical life of even more than a year, regardless of their price.
are material in amount and that have an economic advantage to the entity that exhas a tendency beyond the present year.
Leasehold is an instance of which of the adhering to types of assets?Intangible asset.Property, plant and equipment.Goodwill certainly.Current asset.
The entry to record depreciation expense:decreases a contra ascollection and decreases net income.decreases working capital and decreases net revenue.decreases an ascollection and increases a contra ascollection.rises a contra ascollection and decreases net income.
The net book value of a depreciable asset is:the amount for which the ascollection must be insured.the fair value of the asset.the difference between the asset"s expense and also gathered depreciation.the distinction between the asset"s expense and also depreciation cost.
Many kind of carriers use sped up depreciation for tax purposes because:it is used for determining net income reported to stockholders.it outcomes in reduced taxable income than straight-line depreciation.it is simpler to calculate than straight-line depreciation.it shows the amount of cash used in depreciation.
Depreciation, in audit, is a process that results in:accumulating cash for the replacement of the ascollection.a specific measurement of the financial usefulness of an asset.spanalysis the expense of an ascollection over its advantageous life to the entity.depreciable assets being reported in the balance sheet at their fair worth.
When a firm buys land also on which there is a structure, and the building is torn down so that an proper brand-new building can be constructed on the land:the complete price of the land also and also old building are capitalized as land expense.any kind of of the purchase expense alsituated to the old structure is capitalized as component of the price of the new building.the cost assigned to the land excludes the price of the old structure.any kind of of the purchase price alsituated to the old structure is reported as a loss.
When a firm buys land on which there is a structure, and the building is torn down so that an proper brand-new structure deserve to be built on the land: A) any kind of of the purchase cost allocated to the old building is reported as a loss. B) the cost assigned to the land excludes the cost of the old building. C) the full cost of the land and also old building are capitalized as land also expense. D) any of the purchase expense allocated to the old building is capitalized as component of the expense of the new structure. E) any kind of of the above are mainly acceptable accountancy choices.
Expenditures capitalized as nonexisting assets generally include those expenditures that: A) are produced normal repairs to keep the usefulness of the asset over a number of years. B) are for items that have a physical life of more than a year, regardmuch less of their price. C) are material and also that have an economic advantage to the entity only in the present year. D) are material and also that have an economic benefit to the entity that exoften tends past the current year. E) are immaterial.
Which of the complying with statements best describes the procedure of accounting depreciation? A) A process that attempts to identify loss in financial value over a period of time. B) A process for setting aside cash so funds will certainly be accessible to relocation the asset. C) A procedure for recognizing the expense of an ascollection that need to be matched versus revenue earned as an outcome of using the ascollection over a duration of time. D) A procedure for recognizing every one of the financial expense associated via making use of an asset in a revenue generating activity. E) A procedure that steps the physical wear and tear of an ascollection.
A process for recognizing the cost of an asset that must be matched versus revenue earned as an outcome of utilizing the asset over a period of time.
The enattempt to record depreciation on irreversible assets: A) decreases complete assets and also boosts net revenue. B) decreases present assets and rises expenses. C) decreases total assets and also decreases earnings prior to taxes. D) rises revenue before taxes and increases taxes expense. E) decreases full assets and decreases expenses.
Which depreciation technique results in equal depreciation expense for yearly of an asset"s advantageous life? A) Units-of-production B) Sum-of-the-years-digits C) Double-declining-balance D) MACRS E) Straight-line
When a depreciable ascollection is sold: A) a gain arises if the sales proceeds exceed the net book value. B) a loss arises if the sales proceeds exceed the net book worth. C) any kind of cash received outcomes in a gain. D) depreciation cost is adjusted so tright here is no obtain or loss. E) collected depreciation increases.
The existing value concept is extensively used in company because: A) inflation erodes the purchasing power of money. B) money has actually value over time. C) bookkeeping for operating leases calls for its usage. D) most duties are settled within a year. E) depreciation calculations call for its usage.
If you owed $200 at the finish of each year for the next 3 years, the present value of the obligation would certainly be: A) less than it would be if you owed all $600 at the finish of three years. B) the very same as it would be if you had to pay $300 today and also $300 at the end of 3 years. C) more than $600. D) much less than it would certainly be if you had actually to pay $300 now and $300 at the finish of this year. E) none of the over.

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Goodwill certainly is an asset that arises because the current worth of an acquired company"s estimated future earnings, discounted at the gaining firm"s ROI is: A) even more than the fair value of the net assets of the getting agency. B) less than the fair worth of the net assets of the gaining company. C) equal to the fair worth of the net assets of the obtaining firm. D) much less than the fair value of the net assets of the acquired agency. E) even more than the fair value of the net assets of the obtained firm.
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