oncept of depreciate 9. e in a systematic he use of the asset ed up during the ye the fair market (4 points) Which of the following most accurately reflects the con used in accounting? (A 26) A) The process of allocating the cost of tangible assets to expense rational manner to those periods expected to benefit from the B) An accounting concept that allocates the portion of an asset used to the contra asset account for the purpose of properly recording the fai value of tangible assets. C) The process of charging the decline in value of an economic resource to in the period in which the benefit occurred. D) A method of allocating asset cost to an expense account in a manner which clos matches the physical deterioration of the tangible asset involved. ource to income in manner which closely 6. (4 points) Simmons Corporation reports the following information: Correction of understatement of depreciation expense in prior years, net of tax $ 430,000 Dividends declared Net income 320,000 Retained carings, 1/1/Year 7, as 1,000,000 reported 2,000,000 Simmons should report retained earnings, 1/1/Year 7, as adjusted at A) $1,570,000 B) $2,000,000. C) $2,430,000. D) $3.110,000. - (AC 25) 7. (4 points) Which of the following is a difference between capitalizing interest under U.S. GAAP and IFRS? (A 23 and 39) A) IFRS requires capitalisation stop when the asset is substantially ready to use. B) IFRS requires construction to begin before interest can be capitalised. C) IFRS requires companies have a construction loan in order to capitalise interest. (D) IFRS requires borrowing costs to accrue before interest can be capitalised. 8. (4 points) To record an asset retirement obligation (ARO), the cost associated with the ARO is (LE 6) A) included in a separate account. B) expensed. C) included in the carrying amount of the related long-lived asset.- D) none of these