PLEASE T OR F FOR FOLLOWING QUESTION It is necessary to report both the cost and the accumulated

$.$depreciation of plant assets in the financial statements

When an asset is purchased $($or disposed of$)$ at a time other

than the beginning or the end of an accounting period,

depreciation recorded for part of a year so that the year of

purchase or the year of disposal is charged with its share of

the asset's Depreciation.

When plant assets are purchased as a group in a single

transaction for a lump$-$sum price, the cost of the purchase is

allocated among the different types of assets acquired based

on their relative market values $.$

Depreciation is higher in earlier years and income is lower

in the later years when using straight$-$line versus

accelerated methods $.$

Depreciation expense is calculated using its cost, estimates

of an asset's salvage value, and an estimated useful life $.$

Depreciation does not measure the decline in market value

of an asset each period.

The purchase of a property that included land, building, and

related improvements is called a lump$-$sum or basket

purchase.

Plant assets are reported on a balance sheet at their

undepreciated costs $($book value$),$ not at fair $($market$)$

values $.$

Decision makers and other users of financial statements are

especially interested in evaluating a company's ability to

use its assets in generating Sales $.$

Total asset turnover is calculated by dividing net sales by

average total assets $.$

The book value of an asset when using double$-$declining$-$

balance depreciation is always greater than the book value

from using straight$-$line depreciation, except at the

beginning and the end of the asset's useful life, when it is

the same.

The straight$-$line depreciation method yields a steady

pattern of depreciation expense.

Total asset turnover is calculated by dividing average total

assets by net sales.