Companies have the right to either lease or acquisition assets the they must operate their business. Because that example, many companies lease vehicles instead of to buy them. I m sorry of the complying with is not an advantage of leasing making use of an operation lease relative to to buy an asset? all of these are benefits of operating leases The lessee does no report the item together an asset on that is balance paper sharing of tax benefits between the lessor and also lessee tiny or no down payment by the lessee greater risk the obsolescence through the lessee
Which of the following is no a depreciable asset? equipment trucks structures Land enhancements Land
Which that the following ideal describes depreciation? that is an mediate to market value. all of these that is a valuation approach. it is a expense allocation method. the is a cash buildup approach.

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Which among the adhering to will maximize a company"s report net income in the first year the owning an asset? A long approximated life, a short salvage value, and also declining-balance depreciation A long estimated life, a high salvage value, and declining-balance depreciation A brief estimated life, a high rescue value, and straight-line depreciation A long estimated life, a high salvage value, and straight-line depreciation A short estimated life, a low salvage value, and declining balance depreciation
When there is a readjust in a depreciable asset"s valuable life or salvage worth a footnote disclosure must explain why the adjust in calculation occurred. The company"s previous depreciation expenses should be corrected. Just that asset"s current and also future years" depreciation will be affected. Just that asset"s future years" depreciation will be affected. Brand-new plant assets must be got to change the old.
When equipment is sold for cash in an amount the is better than its publication value, the agency debits the adhering to (i) Cash and (ii) gain on disposal of tree Assets (i) gathered Depreciation and (ii) Cash (i) accumulated Depreciation, (ii) Cash, and also (iii) gain on disposal of plant Assets (i) collected Depreciation, (ii) Cash, and also (iii) lose on handle of tree Assets (i) Cash
Which of the adhering to two ratios multiplied with each other yields the return on assets ratio? The debt to complete assets ratio and the heritage turnover ratio The asset sales ratio and the debt to assets ratio The present ratio and the debt to assets ratio The profit margin ratio and the heritage turnover proportion The existing ratio and also the asset sales ratio
Which the the following statements is true? Goodwill is recorded when a company invests in chin by acquiring property, plant & equipment. If one intangible asset has an unspecified or indeterminate life, it should be amortized. The amortization duration of a patent is the lesser the its valuable life or 20 years, whichever is shorter. Trademarks room amortized end a duration of 20 years. study and advancement costs are usually included to the price of an asset rather than expensed when incurred.
The amortization duration of a patent is the lesser the its useful life or 20 years, whichever is shorter.
The calculation of depreciation utilizing the declining-balance method all the these. multiplies a decreasing percentage times a constant book value. outcomes in raising depreciation cost each period. Ignores salvage worth in determining the amount to which a constant rate is applied. multiplies a continuous percentage times the ahead year"s depreciation expense.
Harrington Corporation recently leased a variety of trucks indigenous Andre Corporation. In inspecting the publications of Harrington Corporation, you notification that the trucks have actually been recorded as legacy on Harrington"s balance sheet. The balance sheet likewise shows a liability because that the leases. Based upon this information, what kind of acquisition are the trucks because that Harrington? funding expenditure funding lease operation lease purchase of trucks network lease
Which one of the following expenses will no be had in the price of equipment? Assembly costs distribution fees Sales taxes associated with buying the equipment Maintenance prices environment costs
Which of the following finest describes depreciation? it is a cash build-up approach. every one of these it is an mediate to market value. Correct Answer that is a expense allocation method. it is a valuation approach.
Which among the following will maximize depreciation expense in the very first year of owning one asset? A quick estimated life, a high salvage value, and also straight-line depreciation A quick estimated life, a low salvage value, and declining balance depreciation A long approximated life, a low salvage value, and declining-balance depreciation A long estimated life, a high rescue value, and straight-line depreciation A long approximated life, a high salvage value, and declining-balance depreciation
Which declare is true about additions to plant assets? Their price is automatically expensed. They increase a Repair expense account. They room revenue expenditures. They space capitalized. They boost the purchases account.
When tools is marketed for cash in an amount the is better than its book value, the company debits the complying with (i) gathered Depreciation and (ii) Cash (i) accumulated Depreciation, (ii) Cash, and also (iii) gain on disposal of tree Assets (i) Cash and also (ii) obtain on disposal of tree Assets (i) gathered Depreciation, (ii) Cash, and (iii) loss on handle of tree Assets (i) Cash
Which of the complying with measures gives an point out of how efficient a agency is in use its assets? blame to full assets proportion profit margin ratio present ratio inventory turnover proportion Asset turnover ratio
Which the the following statements is true? If an intangible asset has actually an unspecified or indeterminate life, it must be amortized. Trademarks space amortized end a duration of 20 years. The amortization period of a patent is the lesser that its beneficial life or 20 years, whichever is shorter. Goodwill is recorded as soon as a service invests in chin by gaining property, plant & equipment. Research study and advancement costs are usually included to the price of an asset fairly than expensed as soon as incurred.
The amortization period of a patent is the lesser the its advantageous life or 20 years, whichever is shorter.

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All that the complying with statements are true concerning the declining-balance an approach of depreciation except the declining-balance method is compatible v the equivalent principle. the book value come which to which the depreciation rate is used declines every year. The declining-balance method is suitable when assets lose their usefulness rapidly. the declining-balance technique produces reduced depreciation price in the early on years as opposed come the later on years. These space all true
the declining-balance an approach produces reduced depreciation price in the early years together opposed come the later years.
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Corporate Finance (The Mcgraw-Hill/Irwin series in Finance, Insurance, and Real Estate)11th EditionBradford D. Jordan, Randolph W. Westerfield, Stephen A. Ross
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