Answer:
the net book value of the asset halfway through its useful life will be less than if straight-line depreciation is used.
Explanation:
Let me use an example to illustrate this.
An asset has a useful life of 4 years. It costs $1000. It has a salvage value of 0
If the straight line depreciation method is used , the depreciation expense every year = $1000/ 4 = $250
The net book value halfway through its useful life = $1000 - ($250 x 2) = $500
If double declining method is used, the depreciation expense in the first year would be = 2/4 x $1000 = $500
The net book value at the beginning of year 2 = $1000 - $500 = $500
Depreciation expense in year 2 = 2/4 x $500 = $250
The net book value at the beginning of year 3 = $500 - $250 = $250
We can see that the net book value halfway through the useful is lower when double declining depreciation method is used
Answer: Not required to be accounted for by the short-cut method if using IFRS.
Explanation:
A Short term Lease is one where a person or entity is granted the legal use of a space for a small period of time which is a year or less.
In calculating this, the Sixteenth International Financial Reporting Standards, IFRS 16, states that a Short Term lease may be charged directly to a Profit and Loss account.
It does not approve the use of the Shortcut method which is a qualitative measure of analysis that is ONLY approved under the US Accounting system (GAAP) and even then is not widely used.
Answer:
Active monetary policy
d. is the strategic use of monetary policy to counteract macroeconomic expansions and contractions.
Explanation:
- The option a is not correct as when central banks purposefully choose to only stabilize money and prices levels through monetary policy, then this policy is called as passive monetary policy.
- The option b is not correct as it has effect on the economy but not in long run.
- The option c is not correct as when central banks take orders from the ruling party on how to conduct monetary policy then it is not an active monetary policy.
- The option e is not correct as when central bank use only fiscal policy to try to influence the economy can or can't be active monetary policy.
- The option d is correct as the active monetary policy is used to counter the changing economic conditions.
