12. How is the matching principle related to the recording of depreciation on tangible operational assets? A. The matching principle requires a company to use the same depreciation. B. Once a particular depreciation method is adopted for a particular asset, the owner must continue to use the same method. C. The accountant who calculates the depreciation may assume that the company will continue in business as long as the estimated useful life of the asset. D. A portion of the cost of the asset should be allocated as an expense for the periods in which the asset helps the business to earn revenue.
Q: A further consideration of the investment proposal by the Hotel Manager concerns the pricing of…
A: Direct costs are those costs which are incurred directly for producing goods or providing services.…
Q: Option 1: He needs to rent a kiosk cart in the mall which will cost $600 a month. In addition, there…
A: Break even Analysis When determining when you will break even financially, a break-even analysis…
Q: Variable Costing Income Statement On April 30, the end of the first month of operations, Joplin…
A: An income statement is a financial report that indicates the revenue and expenses of a business. It…
Q: Oahu Kiki tracks the number of units purchased and sold throughout each accounting period but…
A: FIFO, LIFO and weighted average are the three most common methods which are used for the recording…
Q: On the first day of the fiscal year, a company issues a $3,400,000, 9%, 5-year bond that pays…
A: Solution; Face value of bond = $3,400,000 Issue price of bond = $3,682,766 Premium on issue of bond…
Q: Thunder Corporation, an amusement park, is considering a capital nvestment in a new exhibit.…
A: NPV is calculated as the difference between the cash inflows and cash outflows. In the given case,…
Q: Current Year Loan Interest = $1,663; Depreciation = $10,000; Tax Rate = 34%. The After Tax Cash Flow…
A: Cash Flow states that the flow of cash into the Business and from the Business. The Transaction and…
Q: 7-5: Massey Electronics Massey Electronics manufactures heat sinks. Heat sinks are small devices…
A: Predetermined Overhead rate=Estimated overhead costAllocation base
Q: Depreciation by Units-of-activity Method Prior to adjustment at the end of the year, the balance in…
A: Depreciation by units of activity method :— Under this method of depreciation, depreciation expense…
Q: Apply the generalized lease valuation model to the lease considered by Alberton Shop company,…
A: Generalized lease valuation model :— The proposed model determines the minimum lease amount the…
Q: Whitelands Inc. had the following operating transactions during January 2020, its first month of…
A: Balance sheet is the financial statement which is useful for knowing the financial position of an…
Q: From the following balances taken from the books of Tom and Pop Ltd. for the year ending March 31,…
A: Introduction: Gross profit is the profit generated by a company after deducting the costs of…
Q: Peas and Carrots, LLC manufactures running shoes. The company produces two products: Forrest and…
A: Operating income is the amount of income earned by an entity after deducting the operating expenses…
Q: The following transactions occurred during the month of October 2021. Date Transactions 1 2 3 4 5 6…
A: The cash book is prepared to record the cash transactions and bank transactions incurred during the…
Q: What is the account that is used to close out the revenue and expense accounts at the end of the…
A: The closing entries are prepared to close the temporary accounts of the business. The temporary…
Q: The chart of accounts of Angel's Delivery Service of Flin Flon includes the fol- lowing: Cash, 111;…
A: “Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…
Q: On January 1, 2016, Crammer Inc. issues five-year bonds with a total face amount of $1,000,000 and a…
A: Bonds payable is a form of liability being incurred by the business, on which regular interest…
Q: Select the necessary words from the list of possibilities to complete the following statements.…
A: Net income :— It is revenue minus expenses. Subsidiary ledger :— It is the list of accounts of…
Q: EXPLAIN EASY WAY TO GET A CONSOLIDATED STATEMNET OF FINACIAL POSITION
A: As per IFRS 10 Consolidated Financial Statement are the Financial statement of a group presented as…
Q: Carmelita Inc., has the following information available: Costs from Costs from Beginning Inventory…
A: Equivalent units of production is the amount of whole units equivalent to the partial units work in…
Q: 1) XYZ Company is considering investing in a project that requires an initial investment of $200,000…
A: Payback Period :— it is the most Popular and widely recognised traditional methods of evaluating the…
Q: Analyzing transactions and trial balance 00 (40 min) Check Figure Total Trial Balance Debits $43,500…
A: Journal Entries - Journal Entries are the recording of the transactions in the form of debit and…
Q: While performing your audit of Williams Paper Company, you discover evidence that indicates that…
A: Going Concern: A going concern is a word used in accounting to describe a corporation that has the…
Q: The Giga Company produces tablet computers. The following information is provided: a) Materials used…
A: Product costs are those expenses directly associated with creating an item or service that will be…
Q: A Corp. sold a machinery to a buyer for P1,900,000 on January 1, 2021. Because of the entity’s…
A: Lease - Lease agreements are contracts or instruments that transfer property from one person to…
Q: 29. On 8-17-XX, Judy purchased items for resale from Ralph's Pet Supply RALPH'S PET SUPPLY 454 8TH…
A: A journal entry is a form of accounting entry that is used to report a business transaction in a…
Q: On December 31, 2010, EEEE Company was indebted to AFE Company on a P2,000,000, 10% note. Only…
A: Note: Hi! Thank you for the question, As per the honor code, we are allowed to answer three…
Q: Income Statement Sales Costs Except Depreciation EBITDA Depreciation EBIT Interest Expense (net)…
A: Equity is the component which is shown on the balance sheet of an entity. It shows the amount…
Q: What is the lower-of-cost-or-net realizable value of the inventory?
A: Inventory refers to all items of goods, merchandise, and materials held by a company or business for…
Q: Required information [The following information applies to the questions displayed below.] During…
A: The weighted average cost method is that method of inventory valuation in which we determine the…
Q: The following information relates to ABC Pty Ltd, a business that manufactures electric products…
A: There are two ways of making a cash flow statement direct and indirect. The difference between them…
Q: -Assuming an interest rate of 5%, which three cash flows have the best Net Present Value? (Remember…
A: “Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: 10. A company decided to use the units-of-production method to calculate depreciation on a car to be…
A: Units of production methods for calculation of annual Depreciation:— Depreciation is the decrease in…
Q: Maya Co. had $12,000 of supplies at the end of October. During November, the company bought $4,000…
A: Beginning inventory of supplies represents the supplies that have already been bought but not used…
Q: Home Insert 公, A 四,出,…,eyy A A Q Aa AABBCCI AaBbCcDc AaBb CcD - b 17 - Normal... Strong WPSOffi... A…
A: Financial Statement - In exchange for their money, a company must provide acceptable returns to…
Q: Diluted earnings per share shows dilution resulting from additional shares that may be issued for…
A: Introduction:- Diluted Earnings Per Share indicates the residual net profits accountable to each…
Q: Bramble Company estimates that 384,000 direct labor hours will be worked during the coming year,…
A: Budgeting is a process of planning future expenses and income for a particular period. Budgeting…
Q: Required: 1. Give the entry to record the receipt of the down payment, and the succeeding payment on…
A: Revenue Recognition Revenue recognition specifies the particular circumstances under which revenue…
Q: Put the following accounting cycle transactions-recording processes in order by selecting the…
A: Accounting is one of the important field in business. Various type of accounting that are used in…
Q: Sweet Tooth Candy Company budgeted the following costs for anticipated production for August:…
A: Fixed cost is the cost which remains constant in total. Variable costs varies in total based on…
Q: Presented below are two independent situations: (a) (b) Sheridan Inc. acquired 10% of the 417,000…
A: Journal entries are the transactions which are reported in the books of accounts primarily. It is…
Q: how much is the Allowance for Overvaluation after adjustment?
A: Given that, Allowance for overvaluation = P157,500 Shippment from home office = 120% of cost…
Q: The beginning inventory and the purchases and sales of inventory for March for the Carolina Company…
A: FIFO Inventory Method :— Under this method, it is assumed that first input or purchases are used for…
Q: A governmental auditor assigned to audit the financial statements of the state highway department…
A: Auditor is the professional who is involved in audits of an entity and filing of the audit report.…
Q: Required For a typical $180,000 investment in equipment with a five-year life and no salvage value,…
A: Advantage form depreciation is tax saving on depreciation. Because depreciation is allowed as a…
Q: 4) Assume the bond is redeemed at 94 on May 1, 2022. Record the redemption of the bond with the…
A: Issue price of bonds 3255000 =3500000*0.93 Discount on issue 245000 =3500000-3255000…
Q: Larkspur Company provides the following information about its defined benefit pension plan for the…
A: The defined benefit pension plan relates to an employer-sponsored pension plan wherein the employee…
Q: Bring out the difference between two methods of Accounting for Amalgamation.
A: Amalgamation is the another word which is nothing but the consolidation but here is that one entity…
Q: Calculate the depreciation for both assets.
A: Asset - A corporation has a lot of resources, both financial and non-financial. However, an asset is…
Q: Question 5 To determine the scope of a bookkeeping clean-up engagement, you are reviewing the Client…
A: Recording in equity account opening balance in the Quick book are done in the following…
Step by step
Solved in 5 steps
- Which of the following accounts would not be included in the Acquisition and Payment for Long-Lived Assets Cycle? a. Revenue b. Depreciation expense c. Gain on disposal d. Equipment24. Depreciation Concepts Listed below are concepts and terminology related to depreciation. Required: Match each concept with the related terminology. 1. The period of time over which the company anticipates deriving benefit from the use of the asset 2. The cost of the asset minus its accumulated depreciation 3. The total amount of depreciation expense that has been recorded for an asset since the asset was acquired 4. The amount of cash or trade-in consideration that the company expects to receive when an asset is retired from service 5. A process of cost allocation, not an attempt to measure the fair value of an asset Terminology: depreciation accumulated depreciation book value estimated useful life residual valueWhat is the purpose of charging depreciation in financial statements? A To allocate the cost of a non-current asset over the accounting periods expected to benefit from its use B To ensure that funds are available for the eventual replacement of the asset C To reduce the cost of the asset in the statement of financial position to its estimated market value D To account for the ‘wearing-out’ of the asset over its life
- 11 1. Is it necessary for a business to use the same method of computing depreciation for all classes of its depreciable assets? 2. Under what conditions is the use of the straight-line depreciation method most appropriate? 3. Under what condítions is the use of the units-of-activity depreciation method most appropriate? 4. Under what conditions is the use of the double- declining-balance depreciation method most appropriate? To receive full credit you must answer all questions by the Sept 1st. You must respond to another student's post by Sept 8th. Please follow the Discussion Post Guidelines in your Syllabus. 1. Does a discounted note payable provide credit without * interest? Discuss. Properties of various discussions 31 MacBook AirWhich statement about depreciation is false?a. A major objective of depreciation accounting is to allocate the cost of using an assetagainst the revenues it helps to generate.b. Depreciation should not be recorded in years in which the market value of the asset hasincreased.c. Obsolescence as well as physical wear and tear should be considered when determiningthe period over which an asset should be depreciated.d. Depreciation is a process of allocating the cost of an asset to expense over its usefullife.15 - Which of the following statements about depreciation is false? a) Depreciation is a type of expense that does not require a cash outflow. B) As a result of use, wear, tear, depreciation or obsolescence must be experienced in the tangible asset. NS) The asset to be depreciated should be among the assets of the enterprise. D) Proportional depreciation method can be applied for all tangible fixed assets. TO) For a property, plant and equipment to be depreciated, its economic life must be more than one year.
- 4. The most appropriate definition of depreciation is: A. A means of determining the decrease in the market value of an asset over time B. A means of allocating the cost of an asset over a number of accounting periods C. A means of setting funds aside for the replacement of the asset D. A means of estimating the current value of the assetWhich of the following statements relating to the Accumulated Depreciation account is correct? Select one: O a. The normal balance of the Accumulated Depreciation account is a debit balance. O b. The Accumulated Depreciation account allows the accountant to determine the precise market value of the related asset. O c. The Accumulated Depreciation account is classified as a Liability account. O d. The balance in Accumulated Depreciation account reflects the portion of the historical cost of the asset that has become expense since the item was purchased.One of the main differences between U.S. GAAP and IAS/IFRS is the measurement of property, plant & equipment subsequent to initial recognition. Read IAS 16 and answer the following questions. Provide a list of the references you have used to search this topic. 1) What are the accounting models accepted under IFRS for the measurement of property, plant & equipment subsequent to initial recognition? 2) How often should the company revalue its property, plant & equipment under the revaluation model? 3) How should the revaluation gains and losses be accounted for and reported in the financial statements? 4) How should any claim for compensation from third parties for impairment be accounted for? 5) How should the recoverability of the carrying amount of property, plant & equipment be accounted for?
- Which one of the following disclousures is required by generally accepted accounting principle? a. Depreciation expense for each major class of asset b. Balances of major classes of depreciable assets, by nature or function c. Accumulated depreciation on each depreciable asset d. An explanation of why the depreciation method used was selected by managementPlace T or F in front of each of the following statements. 1. The straight-line method of depreciation is based on the assumption that depreciation expense can be regarded as a constant function of time. 2. Plant assets should be written down (below cost) when their market value has declined temporarily. 3. The accounting profession has developed specifically recommended procedures for recording appraisal increases with respect to plant assets. 4. An asset's cost minus its accumulated depreciation equals its book value. 5. The sum-of-the-years'-digits method of depreciation ignores salvage value in the computation of an asset's depreciable base. 6. When using the double-declining balance method of determining depreciation, a declining percentage is applied to a constant book value. 7. The book value of plant assets initially declines more rapidly under decreasing-charge methods than under the straight-line method. 8. Accounting depreciation is computed by…1. Distinguish among depreciation, depletion and amortization. 2. Identify the factors that are relevant in determining the annual depreciation charge and explain whether these factors are determined objectively or whether they are based on judgment. 3. For what reasons are plant assets retired? Define inadequacy, supersession, and obsolescence. 4. What are the major factors considered in determining what depreciation method use? 5. List the similarities and the differences in accounting treatments of depreciation and cost depletion.