Question
1. Which of the following is true of depreciation accounting? It reflects the declining value of used assets. It is not related to the matching
1. Which of the following is true of depreciation accounting?
It reflects the declining value of used assets. | ||
It is not related to the matching of revenues and expenses. | ||
It is the process of cost allocation. | ||
It does not affect financial statements. |
2.
Which of the following is true about the impairment of plant assets?
a. A firm should perform a recoverability test to evaluate the impairment of plant assets. | ||
b. Impairment loss from plant assets held for use cannot be restored. | ||
c. Impairment loss from plant assets held for disposal can be restored. | ||
d. All of the above are true. |
he most common method of recording depletion for accounting purposes is the
percentage depletion method. | ||
decreasing charge method. | ||
straight-line method. | ||
units-of-production method. |
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