Chapter 11--Depreciation, D

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1、Chapter11--Depreciation,Depletion,Impairment,andDisposal3copyStudent:___________________________________________________________________________1.Theservicelifeofanassetcanonlybemeasuredinunitsofactivityoroutput.  True    False 2.GAAPallowscompaniestochoosebetweentime-based,acti

2、vity,group,orcompositecostallocationmethods,butoncethemethodischosenitmustbeappliedconsistentlyovertime,thisensuresthatfinancialinformationiscomparable.  True    False 3.Thedepreciationbaseiscomputedasfollows:EstimatedResidualValue=DepreciationBase-AssetCost  True    False 4.The

3、useofacceleratedmethodsareappropriatewhentheassetwillbeusedmoreinthelaterperiodsversusearlierperiods.  True    False 5.Thepurposeofdepreciationistosystematicallyandrationallydepreciatethecostoverthelifeoftheassettoensureappropriatecapitalforfuturereplacement.  True    False 6.GA

4、APdoesnotrequirecompaniestodisclosethebalancesofdepreciableassetsbynatureorfunctionbutbymajorclasses.  True    False 7.Whendecidingonadepreciationmethodrepairandmaintenancecostsassociatedwiththeassetshouldbeaconsideringfactortoensurethatthetotalcostsarereportedaccuratelyinthefin

5、ancialstatements.  True    False 8.Groupdepreciationisappliedtoheterogeneousassets.  True    False 9.Compositedepreciationisappliedtohomogeneousassetswhichhavesimilarservicelivesandresidualvalues.  True    False 10.GAAPrequiresthegeneraldescriptionofthemethodsusedinthecomputatio

6、nofdepreciationregardingmajorclassesofassetstobedisclosedinthenotesofthefinancialstatements.  True    False 11.Assetssoldonorbeforethe15tharenotconsideredownedforthemonthbasedonthenearestwholemonthconvention.  True    False 12.Ifacompanypurchasesanassetwithinthelast6monthsofthey

7、ear,itisconsideredownedfortheentireyearbaseduponthenearestwholeyearconvention.  True    False 13.ArequirementofGAAPisthatcompaniesshouldreviewtheirassetstoensuretheyarenotimpaired,especiallywhenachangedictatesthebookvaluemaynotberecoverable.  True    False 14.Acompanymustinclude

8、impairmentdisclosuresintheyearofanimpairmentwri