The term ____________ is used to indicate the process of allocating a prepaid expense to accounting periods during which there are benefits realised from the depreciable equipment.

The term ____________ is used to indicate the process of allocating a prepaid expense to accounting periods during which there are benefits realised from the depreciable equipment. Correct Answer Cost Depreciation

The methods employed to determine the cost depreciation are arbitrary and they have to be arbitrary because it is not possible to carry out tests, either theoretically or practically, to work out the rate of consumption of the economic productive usefulness of depreciable equipment.
Bissoy MCQ

Related Questions

Rashna Company collected the following data in its accounting records in 2014 : From the income statement : Depreciation expense Tk. 1,000 Loss on sale of equipment 3,000 From the comparative balance sheet : Beginning balance , equipment Tk. 12,500 Ending balance , equipment 8,000 Beginning balance , accumulated depreciation 2,000 Ending balance , accumulated depreciation 2,400 No new equipment was purchased during the year. The equipment was sold at the end of the year. What was the cash in -flow from the sale of equipment in 2014?
Which of the following statements are true/ false?
1. Every employer shall be bound to pay to every employee in respect of the accounting year commencing on any day in the year 1979 and in respect of every subsequent accounting year, a minimum bonus which shall be 9.33% of the salary or wages earned by the employee during the accounting year or one hundred rupees, whichever is higher, whether or not the employer has any allocable surplus in the accounting year.
2. Bonus will be paid in cash to the employees.
3. If the allocable surplus exceeds the amount of minimum bonus payable to the employees, the employer is bound to pay to every employee in respect of that accounting year bonus which shall be an amount in proportion to the salary or wages earned by the employee during the accounting year subject to a maximum of 10% of such salary or wage.
4. Bonus needs to be paid within a period of eight months from the close of the accounting year.
Aman's expense is 30% more than Vimal's and Vimal's expense is 10% less than Raman's. If the sum of their expenses is Rs. 6447, then what would be Aman's expense ?
Total expenses of a boarding house are partly fixed and partly varying linearly with the number of boarders. The average expense per boarder is Rs. 700 when there are 25 boarders and Rs. 600 when there are 50 boarders. What is the average expense per boarder when there are 100 boarders?
Ms. Forest likes to let her students choose who their partners will be; however, no pair of students may work together more than seven class periods in a row. Adam and Baxter have studied together seven class periods in a row. Carter and Dennis have worked together three class periods in a row. Carter does not want to work with Adam. Who should be assigned to work with Baxter?
Square Company purchased a piece of equipment on January 1, 2022. The equipment cost was Tk 60,000 and had an estimated life of 8 years and a salvage value of Tk 8,000. What was the depreciation expense for the asset for 2023 under the double declining balance method?
Arrange the following in correct sequence in the event of dissolution of a partnership firm.
1. If surplus, it is distributed among the partners.
2. The assets of the firm are realised.
3. Amount realised is applied towards repayment of liabilities to outsiders and loan taken from partners.
4. Capital contributed by partners is repaid.
Select the correct answer:
Depreciable amount + Residual value of a fixed asset = ?
Statement I Capital expenditure benefits the current accounting period.
Statement II Capital expenditure will also benefit the next accounting period.
Given below are two statement. one labelled as Assertion (A) and other as Reason (R):
Assertion (A): Cost accounting is complementary to financial accounting.
Reason (R): The result of cost accounting are not trustworthy.
Choose the correct answer