Accumulated depreciation is shown on the balance sheet as a subtraction fromthe cost of its related asset
举一反三
- What is the purpose of charging depreciation in accounts? 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
- _______________is the original cost of an asset less any accumulated depreciation.
- The entry to record depreciation expense at the end of an accounting period( ). A: reduces the book value of the asset being depreciated B: is an example of an accrual C: reduces the balance in a contra asset acount D: increased the depreciable cost of the asset being depreciated
- Book value is defined as: A: a. disposal value B: b. disposal value less accumulated depreciation C: c. cost less accumulated depreciation D: d. disposal value less original cost
- Once the estimated depreciation expense for an asset is calculated: A: It cannot be changed due to the historical cost principle. B: It may be revised based on new information. C: Any changes are accumulated and recognized when the asset is sold D: The estimate itself cannot be changed; however, new information should be disclosed in financial statement footnotes. E: It cannot be changed due to the consistency principle.