Download Document
Showing pages : 1 - 2 of 40
This preview has blurred sections. Sign up to view the full version! View Full Document
CHAPTER 11 DEPRECIATION, IMPAIRMENTS, AND DEPLETION IFRS questions are available at the end of this chapter. TRUE-FALSE —Conceptual Answer No. Description T 1. Nature of depreciation. F 2. Nature of depreciation. T 3. Depreciation, depletion, and amortization. T 4. Definition of depreciation base. F 5. Factors involved in depreciation process. F 6. Definition of inadequacy. T 7. Objection to straight-line method. F 8. Units-of-production approach. F 9. Accelerated depreciation method. T 10. Declining-balance method. T 11. Group or composite approach. F 12. Use of the composite approach. T 13. Accounting for changes in estimates. F 14. Computation of impairment loss amount. T 15. First step in determining an impairment. T 16. Reporting impaired assets held for disposal. F 17. Method used to compute depletion. T 18. Costs included in depletion base. F 19. Computing asset turnover ratio. T 20 Profit margin on sales ratio. MULTIPLE CHOICE —Conceptual Answer No. Description d 21. Knowledge of depreciation accounting. b 22. Conceptual rationale for depreciation accounting. c 23. Depreciation and retaining funds. b S 24. Definition of depreciation. a S 25. Service life vs. physical life. a P 26. Definition of depreciable cost. d 27. Economic factors affecting useful service life. d 28. Factors involved in computing depreciation. d 29. Straight-line method assumption. a 30. Activity method of depreciation. a 31. Units-of-production method of depreciation. d 32. Units-of-production method of depreciation. d 33. Knowledge of double-declining balance method. c 34. Components of sum-of-the-years'-digits method. c 35. Graphic depiction of straight-line and sum-of-the-years'-digits methods. b 36. Disadvantage of using straight-line method.
Background image of page 1
Test Bank for Intermediate Accounting, Thirteenth Edition 11 - 2 MULTIPLE CHOICE —Conceptual (cont.) Answer No. Description b 37. Group method of depreciation. d 38. Identification of composite life. c P 39. Group method of depreciation. c S 40. Composite or group depreciation. b 41. Partial-year depreciation computation. b 42. Depreciation for part year. c 43. Change in estimated life of depreciable asset. b 44. Reporting a change in estimate. b 45. Recording an asset impairment. d 46. Depreciation and cost depletion similarities. d 47. Difference between depreciation and cost depletion. d 48. Depreciation and liquidating dividends. a 49. Classification of depletion expense. d 50. Units-of-production depletion expense. d 51. Reserve recognition accounting. c S 52. Items part of depletion cost. b S 53. Required disclosures for depreciation. b P 54. Definition of book value. d 55. Disclosure of depreciation policy. d 56. Asset turnover ratio. d
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

Create a FREE account now to get started. Log In

The email address you entered is not valid. The email address you provided is already in use.
Your username must be at least 5 characters. Your username must consist of only alphanumeric characters. Your username must contain at least one letter. Your username contains inappropriate language. Another user has already claimed this username.
Your password must be at least 6 characters in length.
{[ $select.selected.label ]} Please select a valid school.
By creating an account you agree to our Privacy Policy, Terms of Use, and Honor Code.
Create my FREE account Processing...
Sign Up with Facebook

We will never post anything without your permission.

Already on Course Hero? Log In