The balance in the Accumulated Depreciation account represents the a) amount charged to expense in the present period.b) amount charged to cost given that the acquisition of the plant ascollection. c) amount to be deducted from the price of the plant asset to arrive at its fair market worth. d) cash fund to be supplied to rearea plant assets.
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The book worth of an asset is equal to the a) replacement expense of the ascollection. b) blue book worth relied on by secondary sectors.c) asset"s price much less built up depreciation. d) asset"s fair worth less its historical cost.
In computing depreciation, salvage worth isa) an estimate of a plant asset"s value at the finish of its beneficial life. b) subtracted from built up depreciation to identify the plant asset"s depreciable price. c) ignored in all the depreciation techniques. d) the fair value of a plant ascollection on the date of acquisition.
Useful life is expressed in terms of usage supposed from the ascollection under the a) declining-balance strategy.b) straight-line approach.c) units-of-activity technique. d) namong these answer selections are correct.
Which depreciation technique is a lot of typically supplied in businesses today?a) Straight-line b) Units-of-task c) Declining-balance d) Double-declining-balance
Units-of-task is an proper depreciation technique to usage whena) the productivity of the ascollection varies considerably from one period to one more. b) the asset"s use will be consistent over its useful life. c) it is impossible to identify the productivity of the asset. d) the agency is a manufacturing firm.
Expenditures that maintain the operating performance and intended productive life of a plant ascollection are generally a) capitalized as a part of the cost of the ascollection. b) not taped until they come to be material in amount.c) expensed when incurred. d) debited to the Accumulated Depreciation account.
Depreciable expense is the a) book worth of an ascollection much less its salvage value. b) price of an ascollection much less gathered depreciation.c) expense of an ascollection less its salvage value. d) book worth of an ascollection.
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Management should choose the depreciation approach that a) is easiest to apply. b) best measures the plant asset"s industry value over its useful life. c) has actually been provided the majority of often in the past by the agency.d) finest steps the plant asset"s contribution to revenue over its helpful life.