Which of the following represents an event that is less routine when accounting for long-term assets? A.
Question:
Which of the following represents an event that is less routine when accounting for long-term assets?
A. Recording an asset purchase
B. Recording depreciation on an asset
C. Recording accumulated depreciation for an asset or asset category
D. Changing the estimated useful life of an asset
Step by Step Answer:
A Recording an asset purchase ...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 represents the maximun amortization period mandated for an intangible asset with finite useful life? a. 10 years b. 20 years c. 40 d. No arbitary cap on the useful life has...
-
Which of the following represents the best investment advice? a. Avoid Texas because its expected return is lower than its required return. b. Buy Montana and Texas because their required returns are...
-
Which of the following event pairs would seem to be statistically independent? (Keep in mind that to truly establish independence, we would need to see probabilities.) a. A = exercising regularly B =...
-
Sally has a spinner game. Here are the rules of the game: The player pays $2 and spins the spinner. If the spinner lands on purple, the player wins $0.50. If the spinner lands on yellow, the player...
-
Serena is a single-price, profit-maximizing monopolist in the sale of her own patented perfume, whose demand and marginal cost curves are as shown. a. Relative to the consumer surplus that would...
-
An analyst would like to construct 95% confidence intervals for the mean stock returns in two industries. Industry A is a high-risk industry with a known population standard deviation of 20.6%,...
-
Determine the maturity date, interest at maturity, and maturity value for each of the following notes: a. A 60-day, 10 percent, $2,400 note dated January 5 received from J. Gibbs for granting a time...
-
1. As a general strategy, would you recommend that Carl take an aggressive approach to capacity expansion or more of a wait-and-see approach? 2. Should Carl go with the option for one facility that...
-
need help solving ( b ) the table is listed as from top to bottom,net credit sales,uncollectiable accounts,billing and mailing cost, credit investigation fees,collection agency fees,salary of...
-
Presented below is financial information related to the 2022 operations of Elliott Auto Repair. Instructions Compute net income in 2022 for Elliott Auto Repair. Maintenance and repairs expense...
-
What is the difference between functional obsolescence and physical obsolescence?
-
Farm Fresh Agriculture Company purchased Sunny Side Egg Distribution for $400,000 cash when Sunny Side had net assets worth $390,000. A. What is the amount of goodwill in this transaction? B. What is...
-
Diagram and label the four-step Consultative Sales Presentation Guide.
-
Resources and Information for Faith and Community Leaders Regarding the Israel - Hamas Conflict. analyze the content and provide a summary of the emerging threat. Include key points, potential...
-
How do you define and describe the key management functions of planning, organizing, leading, and controlling? please help explain in a short paragraph each of the four functions that include...
-
what is east chestnut regional health system organizational structure and culture?
-
What are the ethical considerations surrounding the imposition of organizational culture on employees, and how can organizations balance the need for cultural alignment with respect for individual...
-
Building Organizational and Employee Capacity/Competence for IBM through design thinking? Strategies, KPIs, Benchmarks, and Tactics and What elements of the "design thinking" model are most...
-
What is the form of acquisition used in this deal? Why might this form have been chosen? What are the advantages and disadvantages of the form of acquisition used in this case study?
-
Solve for the equilibria of the following discrete-time dynamical systems Pr pt+1 = Pr+2.0(I-Pr)
-
Cougar Corporation owns 1,000 shares of Western Corporation common stock, which it purchased on March 8, 2010, for $12,000. On October 3, 2016, Cougar purchases an additional 300 shares for $3,000....
-
Sally is an attorney who computes her taxable income using the cash method of accounting. Sage Corporation, owned 40% by Sallys brother, 40% by her cousin, and 20% by her grandmother, uses the...
-
Rachel Schurtz is a high school English teacher. In her spare time, she likes to make her own body lotion, lip gloss, and bath and shower gel. She uses the bath products herself and gives them to her...
-
Comparative financial statements for Weller Corporation, a merchandising company, for the year ending December 3 1 appear below. The company did not issue any common stock during the year. A total of...
-
PLEASE HELP OPEN IMAGE PROVIDED ANSWER ALL PARTS PLZ After experiencing high costs in 2 0 1 9 , SES used value engineering to reduce the cost of selling solar heating systems. Managers at SES want to...
-
[ The following information applies to the questions displayed below. ] Deliberate Speed Corporation ( DSC ) was incorporated as a private company. The company s accounts included the following at...
Study smarter with the SolutionInn App