Quiz 11.62 – Factors Affecting Service Life of an Asset
Intermediate Accounting
Spiceland, Nelson, and Thomas
10th Edition
According to the given options, which factor usually causes an asset’s service life to be shorter than its physical life?
According to the given options, which factor usually causes an asset’s service life to be shorter than its physical life?
Which of the following accurately describes the allocation base of an asset?
What is the principle that must be followed for all depreciation methods?
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?
According to the advocates of accelerated depreciation methods, the method levels out the total cost of ownership of an asset over its benefit period if one depreciation and repair & maintenance costs are acknowledged. True or false?
Original cost minus residual value, less accumulated depreciation is equal to the asset’s book value. True or false?
For assets whose service life is a function of use, activity-based methods of depreciation are to be used. True or false?
Which of the following statements is true when property, plant, and equipment are sold for cash?