Chap11 - quiz - quiz\'s answer PDF

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11.1/ Depreciation is

11.2/ Which of the following statements regarding the concept of depreciation is NOT correct?

11.3/ The depreciation method that considers depreciation a function of the passage of time, rather than a function of usage, is the:

11.4/ The depreciation method that does not deduct residual value in calculating depreciation is the:

11.5/ Which of the following statements regarding the concept of depreciation is not correct?

11.6/ Normally, depletion expense is calculated using which allocation approach?

11.7/ Which of the following statements regarding the use of fair value (instead of the use of amortized or depreciated cost) for long-lived assets is correct?

11.8/ A change in the estimates of the expected pattern of consumption of an asset’s benefits, useful life, and residual value will require adjustments to depreciation expense related to that asset. Which of the following is the correct treatment of an estimate change?

11.9/ Various events and changes in circumstances might lead to the impairment of a long-lived asset, including the following:

11.10/ Using the cost recovery impairment model (ASPE), an impairment loss is the excess of the carrying amount of an asset over the

11.11/ Using the rational entity impairment model (IFRS), an impairment loss is the excess of the carrying amount of an asset over its recoverable amount. The recoverable amount is defined as

11.12/ The core difference between the rational entity impairment model (IFRS) and the cost recovery impairment model (ASPE) is that

11.13/ Which of the following is NOT a true statement about long-lived assets classified as held for sale?

11.14/ Which of the following must be recorded in the accounting records when an asset that is NOT held for sale is derecognized?

11.15/ The rate of return on assets is calculated by dividing

11.16/ The depreciable amount of an asset is its original cost

11.17/ All of the following are economic factors related to depreciation except

11.18/ Economic factors that shorten the service life of an asset include

11.19/ The rational entity model in comparison to the cost recovery model

11.20/ Obsolescence is the replacement of one asset with another more efficient and economical asset. FALSE 11.21/ Total depreciation over an asset’s life cannot exceed an amount equal to cost minus estimated salvage value. TRUE 11.22/ The disclosure requirements for private companies are usually more comprehensive than for their public counterparts. FALSE 11.23/ The rational-entry approach used by IFRS recognizes that an asset is impaired if its carrying amount exceeds its recoverable amount, whereas the cost recovery approach used by ASPE recognizes that an asset is impaired if its carrying amount exceeds the net future undiscounted cash flows from its future use and disposal. TRUE 11.24/ The capital cost allowance method is most similar to which depreciation approach?...