Quiz Ch 07 – T/F Residual Value in Double-Declining-Balance Depreciation Method
Financial Accounting
Thomas, Tietz, and Harrison
12th Edition
The double-declining-balance depreciation method initially disregards the residual value.
The double-declining-balance depreciation method initially disregards the residual value.
Residual value is present in the majority of intangible assets.
Asset impairments for all types of long-term assets can be reversed in future periods under IFRS, similar to U.S. GAAP.
Using the straight-line method instead of accelerated methods raises a company’s tax liability.
An asset’s usefulness may exceed its physical lifespan due to obsolescence.
Investing activities on the cash flow statement include long-term asset acquisitions and sales.
The book value of a plant asset is the asset’s cost minus its depreciation expense for the current year.
Patents grant the holder exclusive rights to produce and sell an invention for 20 years, provided by state governments.
Management’s asset utilization profitability can be evaluated through the Return on Assets metric.
An income statement account covers the Accumulated Depreciation account.