4. Depletion expensea. is usually part of cost of goods soldb.includes tangible equipment in the depletable amountc. exclude intangible development costs from depletable amountd. exclude restoration cost from depletable amount

Depletion expense It is a technique used to allocate the cost of extracting natural resources. It is…

Answered: Depletion expense a. is usually part of…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 4MC: Which of the following statements about capitalizing costs is correct? A. Capitalizing costs refers...

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The cost of an asset that is subject to depreciation is called a.depreciable cost. b.trade-in value. c.salvage value. d.revenue.
Depreciation expense under the invenroty system is a. Based on cost minus residual value b. Basically a FIFO approach to depreciable asset accounting c. The result of applying a depreciation rate to the original cost d. A measure of the change in the value of the depreciable asset
Accumulated Depreciation a.is the same as Depreciation Expense b.is used to show the amount of cost expiration of natural resources c.is used to show the amount of cost expiration of intangibles d.is a contra asset account
The ‘carrying value’ of a depreciable asset is the difference between ____? a. Depreciation and accumulated depreciation b. Cost and accumulated depreciation c. Cost and depreciation d. None of the above
Depreciation is a process of Select one Oa. asset valuation D. cost allocation C Cost accumulation. d. asset devaluation. e. The answer does not exst
4. In full cost and successful efforts accounting, costs are amortized over either proved reserves (PR) or proved developed reserves (PDR). Fill in the following table to indicate which reserves (PR or PDR) should be used to amortize the costs under each accounting method. If the costs should not be amortized, put an X to indicate no amortization. Cost a. Proved property acquisition b. Unproved property acquisition c. Successful exploratory drilling d. Successful development drilling e. Unsuccessful exploratory drilling f. Unsuccessful development drilling g. G&G costs h. Wells-in-progress-proved property SE FC
Statement 1: The cost of an asset, or other amount substituted for cost, less its residual value is called “depreciable amount”. Statement 2: And, “depreciation” on the other hand, is the systematic allocation of the amount of depreciation of an asset over its useful life. a. Statement 1 is correct b. Statement 2 is correct c. Both statements are correct d. Both statements are wrong
Under the cost model, subsequent to initial recognition as an asset, an item of property, plant, and equipment shall be carried at a. Revaluation Amount b. Cost less accumulated depreciation and accumulated impairment losses c. Revalued amount less accumulated depreciation and any accumulated impairment loss d. Cost
Depreciation is a process of: a. Asset devaluation b. Cost accumulation c. Cost allocation d. Asset valuation
Statement 1: The cost of an asset, or other amount substituted for cost, less its residual value is called “depreciation”. Statement 2: And, “depreciation” on the other hand, is the systematic allocation of theamount of depreciation of an asset over its useful life. a. Statement 1 is correct b. Statement 2 is correct c. Both statements are correct d. Both statements are wrong
Of the following, what information is required to calculate depreciation allowances under straight-line depreciation? I. Useful life II. First cost III. Salvage value IV. Property class. a. I and II only. b. II and IV only. c. I, II, and III only d. I, II, III, and IV.
Which is not an expense? * costs of goods sold or services rendered loss on disposal of a noncurrent asset write-off of a worthless intangible use of entity resources answer not given

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Depletion expense a. is usually part of cost of goods sold b. includes tangible equipment in the depletable amount c. exclude intangible development costs from depletable amount d. exclude restoration cost from depletable amount