An Asset Is Initially Recorded at ______.

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Iexpenditure on materials and services used in generating the asset ii the employment costs of personnel directly engaged in producing the asset iiiany expenditure that is directly attributable to the asset such as fees to register a legal right and the amortisation of patents and licences ivoverheads that are necessary to. Separate entity concept b.

Answers To Questions

Historical cost concept 58Under this concept the business is assumed to continue to exist for an indefinite period of time.

. An accountant wants to record an asset at fair value. The payment is initially recorded as a prepaid asset. Prepaid expenses are initially recorded as assets because they have future economic benefits and are expensed at the time when the benefits are realized the matching principle.

Purchased biological asset is initially measured and recorded at its fair value less estimated cost to sell. Expenditures for repair and maintenance of plant assets are referred to as. Upon purchase of a biological asset gains and losses can result on its initial recognition since the fair value less estimated cost to sell could be more or lesser than the total purchase price which is exclusive for transaction and transportation cost.

See Page 1 47Under this concept assets are initially recorded at their acquisition cost. Intangible assets are initially bartleby. The cost of a plant asset is initially recorded in the income statement and over the assets life is gradually transferred to the balance sheet.

False Correct Answer False. Intangible assets are initially recorded at a. Summary Prepaid expenses are future expenses that are paid in.

____ financing is obtained from creditors and _____ equity financing is obtained from owners. In each subsequent month 1000 of the insurance asset is charged to expense which reflects the consumption of the asset over time. Equipment purchases are reported on.

An accountant wants to record an asset at fair value. View the full answer. Because the asset or liability is required to be recognized at Fair Value the amount initially recorded on the opening balance sheet will typically not tie to the amount specified in the purchase agreement.

It is initially recorded as an asset but becomes an expense over time. 2 note payable a liability is increased by 15000. The balance sheet classification of contingent consideration as outlined in FASB ASC 805 determines whether it must be re-measured at.

The effects on the accounting equation are. 22 When a prepaid expense initially recorded as an asset is incurred the adjusting entry includes _____. The cost is first recorded in the balance sheet.

AE 121 Quiz ae 121 quiz finals the following define investments except assets held an entity for accretion of wealth for capital appreciation or for other. Subsequently it could be recorded using cost revaluation model. Single entity concept b.

The cost of an internally-generated asset includes. A business pays 12000 in advance for one year of property insurance. It is normally the result of cash being received or paid after revenue has been earned or an expense has been incurred.

Subsequently it could be recorded using cost revaluation model. 1 cash an asset is decreased by 5000. Under this concept assets are initially recorded at their acquisition cout 2.

Historical cost concept c. 57Under this concept assets are initially recorded at their acquisition cost. Example of a Prepaid Asset.

A prepaid asset is also known as a prepaid. A a debit to an asset B a credit to a liability C a. Question 4 An asset is initially recorded at cost.

Under this concept the business is assumed to continue to exist for an indefinite period of time 3. The cost of a plant asset is initially recorded in the income statement and over the assets life is gradually transferred to the balance sheet. 3 equipment an asset is increased by 20000.

What is the cost of the asset for purposes of depreciation over the equipments estimated useful life-10900. It is initially recorded as a liability but become revenue over time. Historical cost concept 48Under this concept the business is assumed to continue to exist for an indefinite period of timea.

This refers to a set of logical ideas and procedures used as guide for accountant in recording and communicating economie information 4. The investment in associate is initially recorded at cost. Separate entity concept b.

Question 4 An asset is initially recorded at cost. Prepayments initially recorded using the asset method. Going concern concept d.

Equipment cost is initially recorded as an asset and as it is used and gets worn down the cost is gradually expensed. Income at book value of the share s received. Equipment is an asset.

Historical cost concept c. Shares received in lieu of cash dividend are recorded as.

The Accounting Information System Chapter 3 Overview