The balance in the Accumulated Depreciation account represents the:________.

Business

1 answer:

ZanzabumX [31]3 years ago

8 0

Answer: The correct answer is d) amount charged to expense since the acquisition of the plant asset.

Explanation: Based on IAS 16: Property, Plant and Equipment, depreciation of an asset commences when the asset is available for use. To buttress the option d above, chosen as correct, the depreciation expense charged commences since the time the asset is put into use, using the acquisition (historical) value and backing out the salvage value.

Depreciation is calculated by different methods. Most commonly used is the straight-line method, which is: (Acquisition amount minus salvage value)/No of years.

On a monthly basis, depreciation charge is recorded to expense and accumulated depreciation by debiting depreciation expense, and crediting accumulated depreciation. This continues immediately the asset is available for use. The accumulated depreciation warehouses all the depreciation expense charged till date (you cannot get this value from depreciation expense, since income statement is zerorized yearly, but balance sheet does not).

You might be interested in

Levenworth Company incurs unnecessary costs each period because of the excess quantities of inventory maintained to meet unexpec

Anon25 [30]

Answer:

The correct answer is C

Explanation:

JIT termed or stand for the Just in Time Inventory, it is a strategy or the plan of action, which is to increase the efficiency and decrease the waste through receiving the goods only as they are required in the process of the production, thereby decreasing the inventory costs.

So, the costs of the obsolescence, inventory financing and storage supervision could be decreased through the practice of the JIT (Just-in-time inventory).

8 0

3 years ago

Expectancy theory implies that linking an increased amount of rewards to performance will increase motivation and performance. F

Tresset [83]

Cognitive evaluation theory would question the use of money as a motivator because external motivational tools may lower intrinsic motivation because people will start working to get the reward, NOT because they are intrinsically motivated or challenged.

4 0

3 years ago

Which type of cover letter would the above excerpt come from? a. Prospecting cover letter b. Networking cover letter c. Applicat

Sergeu [11.5K]

I believe the answer is: B. Networking cover letter

Networking cover letter is sent in order to obtain help from other people in similar industry as you to introduce you to potential employers. Such letters tend to massively increase the likelihood of you obtaining the job since in the employer's perspective, you are a person that his/her friends had trusted and vouch for.

5 0

3 years ago

Classify the following items as issuance of stock, dividends, revenues, or expenses. Then indicate whether each item increases o

Alborosie

Answer:

1. Dividends = It will be classified as dividends.

2. Rent Revenue = It will be classified as revenues.

3. Advertising Expense = It will be classified as an expense.

4. Stock holders pay cash into business = It will be classified as Issuance of stock.

Dividends are the share of revenue distributed to stockholders.

Revenues are income earned by the company.

Expense are the outflow of cash or bank payments for running the business.

Issuance of stock refers to collection of money by the company through issuing equity or preference shares.

4 0

3 years ago

Harvey, a u.s. taxpayer, purchased 10 shares of mvc stock for $100 per share; one year later he sold the 10 shares for $130 a sh

Nonamiya [84]

Harvey purchased 10 shares of mvc stock for = $100 per share
one year later he sold the 10 shares for = $130 a share
The price level increased in a year from = 140 to 147
harvey's before-tax real capital gain =
$1,300 - $1,000(1.05) but he is to report a $300 gain on his income tax

5 0

3 years ago