Quiz 11.15 – T/F Significance of a Gain on Asset Disposal
Intermediate Accounting
Spiceland, Nelson, and Thomas
10th Edition
If there is a gain on the disposal of an asset, it suggests that the asset was sold for more than its fair value.
If there is a gain on the disposal of an asset, it suggests that the asset was sold for more than its fair value.
If there is a loss on the disposal of an asset, it suggests inefficient asset utilization by management over its service life.
What is the appropriate accounting treatment for a major expenditure that extends a truck’s useful life beyond the original estimate, according to GAAP?
What happens when the fair value of equipment exceeds its book value according to International Financial Reporting Standards (IFRS)?
What is the basis for calculating impairment loss on property, plant, and equipment under IFRS?
What accounts should be debited for various expenditures related to a restaurant?
Retroactive adjustments to financial statements are necessary when there is a change in estimated recoverable units used for depletion calculation.
What is depreciation in accounting?
For an asset that has an even four-year service life, which depreciation method will always produce the greatest amount of depreciation expense in the first year?
Which depreciation method results in the least amount of depreciation expense during an asset’s initial year?