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B. Depreciation is a process by which a business sets aside cash to replace assets as needed. No matter when equipment is purchased during the month, it is considered to have been purchased mid-month for MACRS depreciation purposes. Which of the following statements are true regarding straight line depreciation? Accelerated depreciation will decrease IRR. Depreciation is the process of determining the value of accounts receivable which will be collected in the current period. C. The frequency of infrasonic vibrations is much too high to be heard by humans. A. Restaurants depreciate the cost of the equipment over all the years of its useful life. C. It generates an after-tax cash inflow. D) Depreciation is an allocation not a valuation method. All of the above are true.e. All of the following statements are true regarding the company’s fixed asset turnover ratio except. It may involve modular movable even cheap equipment.d. 3. For multiple-choice and true/false questions, simply press or click on what you think is the correct answer. True False 3. Computer equipment for instance has better functionality in its early years. Which of the following statements is true regarding depreciation? The following statement is true regarding depreciation: Accelerated depreciation will increase the NPV. b. a.The use of a declining balance method of depreciation will produce lower depreciation charges in the early years of an asset's life compared to the straight-line depreciation method. B. Ultrasonic vibrations have a frequency lower than the range for normal hearing. Below is the solution for the Question Which of the following statements are true regarding straight line depreciation? Bonus Depreciation is useful to very large businesses spending more than the Section 179 spending limit B. A. Which of the following statements is TRUE regarding depreciation expense? A)expenses will be higher and net income lower if the grant is recorded as deferred revenue. a. C. Changes the amount of a gain. d. Depreciation expense does not measure changes in market value. Record the journal entry for the sale of the equipment if Garcia were to sell the equipment for the following amounts: … c. Depreciation is an allocation not a valuation method. Depreciation is an exact calculation of the decline in value of an asset. b. 4. In straight-line depreciation, the expense amount is the same every year over the useful life of the asset. Which of the following is not true regarding depreciation? O Changes the amount of a gain. Changes the character of a gain. Straight-line depreciation is the only acceptable method. Which of the following statements is true? A. Sales commission is a product cost and factory rent is a period cost. Which of the following is true regarding depreciation recapture? Which of the following statements is true regarding depreciation methods? 12. a) Accelerated depreciation will increase the NPV. It generates an after-tax cash outflow. 19. Factory wages is a product cost and direct material is a period cost. It generates a before-tax cash outflow. True False 2. 6.Which of the following statements about property, plant, and equipment and depreciation is true? It is a method that is calculated by subtracting the salvage value of the asset from the purchase prices, and then … Depreciation is a process of valuation. B. a. Townson’s fixed asset turnover ratio has decreased between Year 1 and Year 2. C. Depreciation is only recorded at the end of a year and never over a shorter time period. c. Accumulated depreciation represents a growing fund of cash. Challenge Depreciation is the systematic allocation of the cost or depreciable amount of an asset over its useful life. b. None of the above is true. Changes the character of a loss. B)Recapture is generally not required upon the gift of § 1250 property. It is a method that is calculated by subtracting the salvage value of the asset from the purchase prices, and then dividing this number by the estimated useful life of asset. It is the ability to change production rates with little penalty in time cost or customer value.b. A. For fill-in-the-blank questions press or click on the blank space provided. If you have difficulty answering the following questions, learn more about this topic by reading our Depreciation (Explanation). A. Accelerated depreciation will increase the Payback. How many of the following statements regarding goodwill are true? Neither ultrasonic nor infrasonic vibrations can be heard by humans. b) Accelerated depreciation will increase the Payback. Which of the following is not one of the factors used to determine depreciation expense. The auditors' approach to the audit of property, plant and equipment largely results from the fact that relatively few transactions occur. D. Management must know the exact life of an asset in order to calculate an acceptable depreciation expense. d. Accumulated depreciation is the portion of an asset's cost that has already been recorded as an expense. Which is NOT true regarding depreciation? Depreciation allows businesses of any kind that purchase equipment or infrastructure, such as a building or warehouse, to spread out the loss of value of the life of the asset rather than having to take the cost as an expense all at once for tax purposes. Which of the following is true regarding depreciation recapture? Accelerated depreciation changes the total amount of depreciation taken over the life of the asset Which of the following is true regarding the concept of flexibility?a. B. A. a.The use of a declining balance method of depreciation will produce… a. Depreciation expense reflects the decrease in market value each year. LO 11.5Garcia Co. owns equipment that costs $150,000, with accumulated depreciation of $65,000. Factory maintenance is a product cost and sales commission is a period cost. Depreciation is the process of allocating the costs of long-term assets over their expected useful life. B)expenses will be higher and net income lower if the grant is accounted for as an adjustment to the asset. Depreciation allocates the cost of a fixed asset over its estimated life. A) Depreciation expense reflects the decrease in market value each year. E. It will always cause the … Property, Plant, and Equipment: Depreciation and Depletion True / False Questions 1. Which of the following is an incorrect statement regarding Bonus Depreciation? 1. it provides funds for the replacement of the asset through tax savings over the assets life. A)Depreciation recapture that existed at the death of the taxpayer carries over to the beneficiaries. Which of the following statements is true? Which of the following statements is true of vibrations? Solution for Which of the following statements is true regarding depreciation methods? Example. O Only applies to ordinary assets. Computer equipment also becomes obsolete in a span of few years due to technological developments. Depreciation is the process of recognizing revenues earned within the current accounting period. B. Using reducing balance method to depreciate computer equipment would ensure that higher depreciation is charged in the earlier years of its operation. 2. C) Depreciation expense does not measure changes in market value. O Changes the character of a gain. Multiple Choice. D. Only applies to ordinary assets. Which of the following is not a section 1245 asset if held for more than one year? None of the choices are correct. Which of the following statements is most likely correct regarding the depreciation of property, plant and equipment under IFRS and U.S. GAAP? A company should use the depreciation method that best matches expense recognition with the use of the asset. 53. Which of the following is true about the MACRS depreciation system? Which of the following is statements is false regarding depreciation recapture under § 1250? Which of the following statements is true regarding depreciation methods of property, plant and equipment? Consider a piece of equipment that costs $25,000 with an estimated useful life of 8 years and a $0 salvage value. Company X is going to retire equipment that is fully depreciated with Thornton Industries purchased a machine for $45,000 and is

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