A: reduces the book value of the asset being depreciated
B: is an example of an accrual
C: reduces the balance in a contra asset acount
D: increased the depreciable cost of the asset being depreciated
举一反三
- The term accumulated depreciation, as used in accounting, is best defined as A: the portion of a plant asset recognized as expense since the asset was acquired. B: funds (or cash) set aside to replace the asset being depreciated. C: earnings retained in the business that will be used to purchase another asset when the present asset is depreciated. D: an expense of doing business.
- Depreciation is the systematic allocation of the depreciable amount of an asset over the asset's useful life.
- What is the purpose of charging depreciation in accounts? A: To allocate the cost of a non-current asset over the accounting periods expected to benefit from its use B: To ensure that funds are available for the eventual replacement of the asset C: To reduce the cost of the asset in the statement of financial position to its estimated market value D: To account for the 'wearing-out' of the asset over its life
- Accumulated depreciation is shown on the balance sheet as a subtraction fromthe cost of its related asset
- The units-of-production method of depreciation charges a constant amount of expense for each period of an asset's useful life.
内容
- 0
Which<br/>of the following is not a change in accounting principle? () A: A<br/>change from LIFO to FIFO B: A<br/>change in estimated salvage value of depreciable asset C: A<br/>change from an accelerated depreciation method to straight-line<br/>depreciation D: A<br/>change from historical cost to fair value accounting.
- 1
In order to convert the average annual net cash inflow from the asset back to the average annual operating income from the asset, one must ( ) A: subtract annual depreciation expense B: add annual depreciation expense C: multiply by annual depreciation expense D: divide by annual depreciation expense
- 2
A bond is an example of which type of asset? ( ) A: Physical asset B: Real asset C: Financial asset D: Tangible asset E: Equity asset
- 3
The book value of a plant asset is defined as:
- 4
Cost of installing a new production machine A: Asset B: Expense