Understanding Residual Value in Accounting

Play an AI-generated podcast conversation about this lesson

Which term best describes the systematic allocation over its useful life of the cost of an asset, or other amount substituted for cost, less its residual value?

Value in use

Depreciation (correct)

Impairment

Derecognition

According to IAS16, which of the following should be included in the cost of an item of property, plant and equipment?

Costs of training staff on the new asset

Apportioned general overhead costs

Installation and assembly costs

Initial delivery and handling costs (correct)

What best describes the amount at which an asset could be exchanged between knowledgeable, willing parties in an arm's length transaction?

Realisable value

Fair value (correct)

Residual value

Value in use

Per IAS16, which statement regarding non-current assets is correct?

Land and buildings are accounted for separately, even when acquired together Signup and view all the answers

What refers to the removal of an asset from an entity's statement of financial position?

Derecognition Signup and view all the answers

What best describes the term 'residual value'?

The estimated net amount currently obtainable if the asset were at the end of its useful life Signup and view all the answers

Which term best describes the cost of an asset less its residual value?

Depreciable amount Signup and view all the answers

What best describes the carrying amount of an asset?

The amount at which the asset is recognized in the statement of financial position after deducting any accumulated depreciation and accumulated impairment losses Signup and view all the answers

Which term best describes the removal of an asset from an entity's statement of financial position?

Derecognition Signup and view all the answers

What best describes the term 'depreciation'?

Allocating the cost of an asset over its useful life Signup and view all the answers

Understanding Residual Value in Accounting

Podcast Beta

Questions and Answers

Which term best describes the systematic allocation over its useful life of the cost of an asset, or other amount substituted for cost, less its residual value?

According to IAS16, which of the following should be included in the cost of an item of property, plant and equipment?

What best describes the amount at which an asset could be exchanged between knowledgeable, willing parties in an arm's length transaction?

Per IAS16, which statement regarding non-current assets is correct?

What refers to the removal of an asset from an entity's statement of financial position?

What best describes the term 'residual value'?

Which term best describes the cost of an asset less its residual value?

What best describes the carrying amount of an asset?

Which term best describes the removal of an asset from an entity's statement of financial position?

What best describes the term 'depreciation'?

More Quizzes Like This

Residual Plots

Quiz sobre herramientas de medición de creación de valor empresarial

Residual Dividend Policy

R-Squared vs P-Value: Quiz and Flashcards

Upgrade to continue