reading 37 activo fijo preguntas

8/12/2019 Reading 37 Activo Fijo Preguntas

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Reading 37 Analysis of Long-Lived Assets: Part II - Analysis of Depreciation and Impairment

18-A company is switc ing from straig t-line depreciation to an accelerated met od ofdepreciation! Ass"ming all ot er reven"e and e#penses are at t e same levels for t e ne#tperiod$ switc ing to an accelerated met od will most likely increase t e company%s:

A) total assets on the balance sheet.

B) taxes.

C) net income/sales ratio.

D) fixed asset turnover ratio.

1&-' ic of t e following statements comparing straig t-line depreciation met ods toalternative depreciation met ods is least accurate ( )ompanies t at "se:

A) accelerated depreciation methods will decrease the amount of taxes in early years.

B) straight-line depreciation methods will have higher boo values for the assets on the balancesheet than companies that use accelerated depreciation.

C) accelerated depreciation methods will increase the total amount of depreciation expense overthe life of an asset.

D) units-of-production and service hours methods to depreciate assets will overstate incomeduring periods of low production.

*+-A carpet cleaning company "ses service o"rs to depreciate t e company%s assets! , ecompany ad very little "siness over t e past year d"e to a poor economy! ' ic of t efollowing is most accurate (

A) Depreciation expense will be higher due to the decrease in demand for carpet cleaninge!uipment.

B) "ncome will be overstated on the income statement.

C) #he economic value of the carpet cleaning e!uipment will increase due to lower depreciationexpense.

D) Assets will be understated on the balance sheet.

*1-.lovac )ompany p"rc ased a mac ine t at as an estimated "sef"l life of eig t years for/7$0++! Its salvage val"e is estimated at /0++!

' at is t e depreciation e#pense for t e second year$ ass"ming .lovac "ses t e do" le-

declining alance met od of depreciation(

A) $%&'( .

B) $%&'*+.

C) $%& , .

D) $(&, *.**-' at is t e depreciation e#pense for t e t ird year$ ass"ming .lovac "ses t e s"m-of-years digits met od of depreciation(


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A) $ .

B) $ % .

C) $%&%+,.

D) $ (.

*3-, is information pertains to e "ipment owned y 2rigade )ompany!

)ost of e "ipment /1+$+++ stimated resid"al val"e /*$+++

stimated "sef"l life 0 years

Depreciation met od .traig t-line

, e acc"m"lated depreciation at t e end of year 3 is:

A) $%&+**.

B) $'& **.

C) $(& **.

D) $ & **.

*4-After t ree years$ 2rigade e#pects t at it will "se t e e "ipment for a total of si# years5i!e!$ 3 more years6! 2rigade estimates no c ange in t e resid"al val"e! ' at is t edepreciation e#pensefor year 4(

A) $%&*+,.B) $%&+**.

C) $%&,((.

D) $ **.

*0- n an"ary 1$ *++0$ 9 )orporation c anged from t e straig t line met od to anaccelerated met od of depreciation! nder t e accelerated met od$ t e acc"m"lateddepreciation t ro"g Decem er 31$ *++4$ was /;++$+++ ig er t an if t e straig t linemet od ad een "sed! 9 %s income ta# rate is 4+

C) $+**&***.

D) $*.


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*;- 9 ac "ired an asset on an"ary 1$ *++4$ for /;+$+++ cas ! At t at time 9 estimatedt e asset wo"ld last 1+ years and ave no salvage! D"ring *++; 9 estimated t eremaining life of t e asset to e only t ree more years wit a salvage val"e of /3$+++! If 9"ses straig t line depreciation$ w at is t e depreciation e#pense for *++;(

A) $% &***.

B) $+&***.

C) $% &***.

D) $%+&***.

*7- n an"ary 1$ *++4$ 9 p"rc ased a tr"c= t at cost /*4$+++! , e tr"c= ad an estimated"sef"l life of 0 years and /4$+++ salvage val"e! , e amo"nt of depreciation e#penserecogni>ed in *++; ass"ming t at 9 "ses t e do" le declining alance met od is:

A) $'&***.

B) $ &,+*.

C) $ &***.D) $(&' +.

*8-Determine t e average age as a percent of deprecia le life and t e average age of t eplant and e "ipment given t e following information:

Depreciation e#pense is /10$+++! Plant and e "ipment is /*0+$+++! Acc"m"lated depreciation is /;+$+++!

Average Age 01) Average Age 02ears)

A) 1 'B) '1 +

C) 1 +

D) '1 '

*&-A firm "sing straig t-line depreciation reports t e following financial information:

?ross investment in fi#ed assets of /8&$1;7$*+0! Acc"m"lated depreciation of /30$341$773! Ann"al depreciation e#pense of /3$880$3&8!

, e appro#imate age of t e fi#ed assets is:

A) . years.

B) %(. years.

C) .%* years.

D) . years.


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3+- nding gross investment@depreciation e#pense is "sed to estimate t e average:

A)depreciable life.

B)age.

C)age as a percent of depreciable life.

D)depreciation.

31-?ross plant and e "ipment /1$*0+$+++

Depreciation e#pense /*30$+++

Acc"m"lated depreciation /7*0$+++

, e average deprecia le life of plant and e "ipment is:

A) (.* years.

B) . ( years.

C) .( years.

D) .'* years.

3*-Average remaining "sef"l life of t e plant and e "ipment is:

A) . ( years.

B) (.* years.

C) '.( years.

D) .( years.

33-, e average age of plant and e "ipment is:

A) %.'* years.

B) . ( years.

C) .( years.

D) (.* years.

34-An analyst will most likely "se t e average age of deprecia le assets to estimate t ecompany%s:

A) future dividend payments.

B) cash flows.


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C) near-term financing re!uirements.

D) earnings potential.

30-An asset is impaired w en:

A)accumulated depreciation exceeds ac!uisition costs.

B)accumulated depreciation plus salvage value exceeds ac!uisition costs.

C)the present value of future cash flows exceeds the carrying amount of the asset.

D)the firm can no longer fully recover the carrying amount of the asset.

3;-) anges in asset lives and salvage val"e are c anges in acco"nting:

A)estimates and no specific disclosures are re!uired.

B)estimates and specific disclosures are re!uired.

C)principle and specific disclosures are re!uired.

D)principle and no specific disclosures are re!uired.

37-, e following infor

mation as een gat ered regarding 'illiams Investing$ w ic "ses t e straig t-line met odfor depreciation!

Deprecia le life of 8 years on its assets! et oo= val"e of assets is /4+ million! Acc"m"lated depreciation is /*8 million! .alvage val"e is /1* million! It recently revised t e estimates for t e remaining "sef"l life of its assets from 4

years to ; years! et income efore t e c ange is /13 million! , e effective ta# rate for t e firm is 4+

percent!

Depreciation e#pense for 'illiams Investing will decrease y:

A) $(.+ million.

B) $%.' million.

C) $+. million.


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4*-In its first year of "siness$ Digmore )orporation%s alance s eet s ows gross fi#edassets at /&+ million and acc"m"lated depreciation of /1+ million! If t e estimated salvageval"e of t ese assets is /1+ million$ and t e original estimated "sef"l life is 8 years$ w atmet od of depreciation did Digmore most likely "se(

A) 8um-of-years digits.

B) Double-declining balance.

C) :nits of production.

D) 8traight 9ine.

reading 37 activo fijo preguntas

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