• 2021-04-14
    Equipment’s book value is the original cost plus depreciation.
  • 内容

    • 0

      Which of the following statements is FALSE? A: Depreciation is a method used for accounting and tax purposes to allocate the original purchase cost of the asset over its life. B: Sometimes the firm explicitly forecast free cash flow over a shorter horizon than the full horizon of the project or investment. C: Earnings include the cost of capital investments, but do not include non-cash charges, such as depreciation. D: Firms often report a different depreciation expense for accounting and for tax purposes.

    • 1

      Which of the following costs belongs to Selling and Administrative Costs? A: Direct Labor Cost B: Direct Material Cost C: Depreciation of manufacturing equipment D: Sales Commissions

    • 2

      Total depreciation expense over an asset's useful life will not be identical under all methods of depreciation. A: 正确 B: 错误

    • 3

      In appraisals, depreciation can be defined as:( ) A: A deduction from value B: Actual loss in value compared to current cost as new ‍ C: Diminished utility D: ‍Either (Actual loss in value compared to current cost as new) or (Diminished utility)

    • 4

      The book value of an old machine is always considered an opportunity cost in a decision.