If a company were filing a claim for compensation with an insurance company for manufacturi equipment damaged in a flood, what method of valuation for the equipment would be most relevant? Historical cost Net realizable value Depreciated historical cost Replacement cost
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- 6 The difference between cost of the asset and residual value is known as _______________. a. Depletion b. Depreciable cost c. Salvage value d. Total cost of the asset Clear my choiceQUESTION 17 Match the term on the left to the appropriate description on the right. v Historical cost A. The amount of a PP&E asset's acquisition cost that will be depreciated over the asset's useful life v Depreciable cost B. An asset whose value derives from rights and privileges rather than physical existence v Salvage value v Accumulated depreciation C. The capitalized acquisition cost of an asset v Intangible asset v Amortization D. The process of allocating an intangible asset's acquisition cost to expense over its useful life E. The book value of a fully-depreciated PP&E asset F. The total amount of depreciation expense that has been recorded to-date for a PP&E assetChapter 8 Why are the costs of plant/long term assets recovered through depreciation vs. expensed out during the period purchased? Choose one of the following depreciation methods to discuss: straight line, units of production, declining balance. Share how depreciation using this method is calculated and provide an example of when this would be the most ideal method for application.
- All amounts paid to acquire a long lived-asset and to get it ready for its intended use are referred to as OA. net book value OB. the cost of an asset OC salvage value O D. immediate expenses BEE1 Select the best answer for the question. 11. What is the process by which the cost of a fixed asset over its estimated useful life is periodically charged to an expense a O A. Hypothecation B. Accretion C. Liquidation D. Depreciation O Mark for review (Will be highlighted on the review page) > O Hi FuQuestion no 3 What is avoidable and unavoidable cost? In terms of decision making how do we treat the following components and why: a.Depreciation of the equipment b.Resale value of the equipment and c.Allocated common fixed cost
- 1 The cost of fixed assets is distributed over the asset's estimated lifetime. This spreading of costs over the periods which receives benefit is known as Question 1 options: Useful life Depreciation Salvage value Units of productionAn estimate of how an asset will be used up over its useful life is known as what? a. Depreciation rate b. Impairment value c. Useful life d. Salvage value26 Present value of decommissioning and restoration costs are capitalized as PPE and with a corresponding credit to what account? _________
- Q23 What is process that is done in HRA, the same way like that of any other physical asset? In this process, the asset is written off over its estimated useful life. a. Humanization b. Capitalization c. Depreciation d. Amortizationicerca Dashboard My courses Which of these is an allowable cost of an asset under IAS 16? 1. Professional fees 2. General overheads 3. Cost of site preparation 4. Initial operating losses 5. Administration expenses 6. Decommissioning costs O a. 1, 3 and 6 O b. 1, 3 and 5 O c. 1, 2 and 6 O d. 1, 2 and 4 O Financial Reporting (level 5) (2022_23) t Y ASUS ZenBook AssessmentQuestion Content Area Which of the following costs incurred subsequent to the acquisition of a machine would be appropriately accounted for by debiting the accumulated depreciation account related to the machine?