The overriding principle for all depreciation methods

This preview shows page 84 - 87 out of 194 pages.

26. The overriding principle for all depreciation methods is that the method must be: A. Conservative and economic. B. Systematic and rational. C. Consistent and conservative. D. Significant and material. AACSB: Reflective Thinking AICPA BB: Critical Thinking Blooms: Remember Difficulty: 1 Easy Learning Objective: 11-01 Explain the concept of cost allocation as it pertains to property; plant; and equipment and intangible assets. Spiceland - Chapter 11 #26 Topic: Explain the concept of cost allocation as it pertains to PP & E and intangible assets 27. Depreciation: AACSB: Reflective Thinking AICPA BB: Critical Thinking Blooms: Remember Difficulty: 2 Medium Learning Objective: 11-01 Explain the concept of cost allocation as it pertains to property; plant; and equipment and intangible assets. Spiceland - Chapter 11 #27 Topic: Explain the concept of cost allocation as it pertains to PP & E and intangible assets
Image of page 84

Subscribe to view the full document.

28. Assuming an asset is used evenly over a four-year service life, which method of depreciation will always result in the largest amount of depreciation in the first year? AACSB: Reflective Thinking AICPA BB: Critical Thinking Blooms: Understand Difficulty: 2 Medium Learning Objective: 11-02 Determine periodic depreciation using both time-based and activity-based methods. Spiceland - Chapter 11 #28 Topic: Determine periodic depreciation using both time-based and activity-based methods 29. In the first year of an asset's life, which of the following methods has the smallest depreciation? AACSB: Reflective Thinking AICPA BB: Critical Thinking Blooms: Understand Difficulty: 2 Medium Learning Objective: 11-02 Determine periodic depreciation using both time-based and activity-based methods. Spiceland - Chapter 11 #29 Topic: Determine periodic depreciation using both time-based and activity-based methods
Image of page 85
30. An asset acquired January 1, 2013, for $15,000 with an estimated 10-year life and no residual value is being depreciated in an equipment group asset account that has an average service life of eight years. The asset is sold on December 31, 2014, for $6,000. The entry to record the sale would be: A. B. C. D. Under the group depreciation method, it is assumed that the book value of a disposed item exactly equals any proceeds received, and no gain or loss is recorded. AACSB: Reflective Thinking AICPA FN: Measurement Blooms: Understand Difficulty: 3 Hard Learning Objective: 11-02 Determine periodic depreciation using both time-based and activity-based methods.
Image of page 86

Subscribe to view the full document.

Image of page 87
You've reached the end of this preview.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern