1)

Regardless of the GAAP depreciation method selected:

		the balance sheet shows the acquisition cost and the accumulated depreciation of each asset in the same way
		the total accumulated depreciation at the end of the assets life will equal the original cost minus residual value
		the total amount of depreciation taken over the useful life of the asset will be the same
		the book value at the end of the assets useful life will be the residual value
		all of the above

2) Which of the following statements about the accumulated depreciation account is correct?

		It appears on the balance sheet and represents the total depreciation expense taken in all years to date.
		It appears on the income statement and represents the total depreciation expense taken in all years to date.
		It appears on the balance sheet and represents the total depreciation expense taken in the current year.
		It appears on the income statement and represents the total depreciation expense taken in the current year.

3) The cost of a plant asset is recognized as an expense:

		in the period in which it is sold.
		as it yields benefits to the company.
		in the period in which it is acquired.
		when it is paid for.

4) GAAP depreciation is based on estimates of salvage value and useful life. Once determined, those values (and the depreciation calculations based on them) cannot be changed.

True

False

5) To be depreciable, assets generally:

		must have a useful life greater than 1 year
		must be tangible
		cannot be held for resale
		cannot be held for investment purposes
		must meet all of the above conditions

Please answer all the 5 questions and don't miss any of them, I will rate your answer, if all of these are correct.