Why do business entities need far less assistance from accountants?
Which of the following is not a similarity in the accounting treatment for depreciation and cost depletion? a. The estimated life is based on economic or productive life.
What should result from a coherent set of Accounting Standards and rules?
Accounting. Accounting questions and answers. Question 13 Which of following is not a similarity in the accounting treatment for depreciation and cost depletion? Question 13 options: A. The estimated life is based on economic or productive life. B. Assets subject to either are reported in the same. Question: Question 13 Which of following is ...
Which financial information exhibits the characteristic of consistency?
Which of following is not a similarity in the accounting treatment for depreciation and cost depletion? a. The estimated life is based on economic or productive life. b. Assets subject to either are reported in the same classification on the statement of financial position.
How many terms are in the book Accounting 101?
Which of following is not a similarity in the accounting treatment for depreciation and cost depletion? a. The estimated life is based on economic or productive life. b. Assets subject to either are reported in the same classification on the balance sheet. c.
What is service life in accounting?
a. service life refers to the time an asset will be used by a company and physical life refers to how long the asset will last. The term "depreciable base," or "depreciation base," as it is used in accounting, refers to. a. the total amount to be charged (debited) to expense over an asset's useful life.
What is depreciation base?
a. the total amount to be charged (debited) to expense over an asset's useful life. b. the cost of the asset less the related depreciation recorded to date.
What is physical life?
physical life refers to how long the asset will be used by all owners. a. service life refers to the time an asset will be used by a company and physical life refers to how long the asset will last. The term "depreciable base," or "depreciation base," as it is used in accounting, refers to.
What is the principal objection to the straight line method of depreciation?
A principal objection to the straight-line method of depreciation is that it#N#a. provides for the declining productivity of an aging asset.#N#b . ignores variations in the rate of asset use.#N#c. tends to result in a constant rate of return on a diminishing investment base.#N#d. gives smaller periodic write-offs than decreasing charge methods.
What is composite depreciation?
Composite or group depreciation is a depreciation system whereby#N#a. the years of useful life of the various assets in the group are added together and the total divided by the number of items.#N# b. the cost of individual units within an asset group is charged to expense in the year a unit is retired from service.#N#c. a straight-line rate is computed by dividing the total of the annual depreciation expense for all assets in the group by the total cost of the assets.#N#d. the original cost of all items in a given group or class of assets is retained in the asset account and the cost of replace¬ments is charged to expense when they are acquired.
What is depreciation base?
the total amount to be charged (debited) to expense over an asset's useful life.#N#b . the cost of the asset less the related depreciation recorded to date.#N#c. the estimated market value of the asset at the end of its useful life.#N#d. the acquisition cost of the asset.
How long does Myers machinery last?
On January 1, 2012, Myers estimated that the remaining life of this machinery was six years with no salvage value.
What is depletion expense?
Depletion expense#N#a. is usually part of cost of goods sold. #N#b. includes tangible equipment costs in the depletion base.#N#c. excludes intangible development costs from the depletion base.#N#d. excludes restoration costs from the depletion base.
What is the difference between service life and physical life?
The major difference between the service life of an asset and its physical life is that#N#a. service life refers to the time an asset will be used by a company and physical life refers to how long the asset will last. #N#b. physical life is the life of an asset without consideration of salvage value and service life requires the use of salvage value.#N#c. physical life is always longer than service life.#N#d. service life refers to the length of time an asset is of use to its original owner, while physical life refers to how long the asset will be used by all owners.
What is service life in accounting?
a. service life refers to the time an asset will be used by a company and physical life refers to how long the asset will last. The term "depreciable base," or "depreciation base," as it is used in accounting, refers to. a. the total amount to be charged (debited) to expense over an asset's useful life.
What is depreciation base?
a. the total amount to be charged (debited) to expense over an asset's useful life. b. the cost of the asset less the related depreciation recorded to date.
What is accrual accounting?
'accrual accounting depicts the effects of transactions and other events and circumstances on a reporting entity's economic resources and claims in the periods in which those effects occur, even if the resulting case receipts and payments occur in a different period'. Earned.
How long does a financial statement last?
Divides the life of an entity into time periods. Users can assume that financial statements represent a period of time, typically one year (company law requires financial statements to be prepared yearly). Transactions in financial statements reflect the actual cost incurred, or revenue earned.
What is general purpose financial reporting?
provide information that enables the primary users of general purpose financial reporting (present and potential investors, lenders and other creditors) make decisions about buying, selling or holding equity or debt instruments and providing or settling loans or other forms of credit.
What is the statement of financial position?
The statement of financial position can be regarded as a history of management's past decision making. Money measurement concept. The information provided in the financial statements is expressed in monetary amounts (typically the currency of the country where the entity is registered). Duality concept.
What is double entry?
Assumes that every transaction affects two accounts in a set of financial statements in such a manner as to keep the accounting equation in balance. Substance over form concept. The economic substance of a transaction should be given precedence over the legal form of the transaction.