Accounting true or false?

1. All long-lived assets must be amortized for accounting purposes. 2. If paid by the purchaser, freight charges and insurance during transit are included in the cost of equipment. 3. The amortizable cost of a long-lived asset is its original cost minus obsolescence. 4. Residual value is not... show more 1. All long-lived assets must be amortized for accounting purposes.


2. If paid by the purchaser, freight charges and insurance during transit are included in the cost of equipment.


3. The amortizable cost of a long-lived asset is its original cost minus obsolescence.


4. Residual value is not subtracted from a long-lived asset’s cost in determining amortization expense under the declining-balance method of amortization.



5. A change in the estimated useful life of a long-lived asset may cause a change in the amount of amortization recognized in the current and future periods, but not to prior periods.



6. Ordinary repairs should be recognized when incurred as operating expenditures.



7. Once an impairment loss has been recorded, the book value of the asset should not be adjusted for any subsequent increases in the fair market value of the asset.



8. A loss on disposal of long-lived assets can only occur if the cash proceeds received from the asset sale are less than the asset's net book value.


9. Conceptually, the cost allocation procedures for natural resources parallels that of property, plant, and equipment.



10. The cost of an intangible asset with a definite life must be amortized over a 40-year period.
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