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Is The book value of a fixed asset reported on the balance sheet represents its market value on that date?
It is false that the book value of a fixed asset reported on the balance sheet represents its market value on that date. Fixed assets are also known as tangible assets.
The book value of a plant asset is?
The book value of a fixed asset (PP&E) is the difference between the fixed asset account and it's related accumulated depreciation account. You have a truck you paid $25,000 and you have depreciated it for the amount of $10,000 then the "book value" would be $15,000.
When determining the value of a fixed Asset and a rebate was given do you reduce the value of the the fixed asset or book at a true cost?
If the company are using cost basis to value their assets then the rebate will reduce the cost.
The net book value of a fixed asset is determined by?
Capitalized Cost minus Accumulated Depreciation
How is the net book value of a fixed asset is determined by?
Original cost less the accumulated depreciation
What is the estimated salvage value of a fixed asset?
1. Estimated salvage value is the amount which is expected to be received from disposal of fully depreciated asset after useful life of asset.
Why fixed asset are subject to depreciation?
fixed asset does not mean that the value of asset no decrease in future it,s for sure, that,s why we depreciate it annually.....
How do you remove a completely depreciated fixed asset from your fixed asset accounts?
Debit Accumulated Depreciation and Credit the Fixed Asset account for the capitalized value; however, if you still own the asset, you should not remove it.
Depreciation is a process of cost allocation and not valuation What does this mean?
Depreciation spreads the cost of a fixed asset over the useful life of that asset so a portion of that cost is recognized as an expense in each period that the asset is in service. The original cost, less the accumulated depreciation is the net book value of the asset. The net book value may not represent the actual market value of the asset. Depreciation is not concerned with the market value but rather the value of the contribution that the asset makes to the business.
Is fixed deposit an asset?
Yes. An Asset is something that has a value and can be sold/converted to cash.
The book value of an asset is the same as market value of the asset?
Book value of an asset is the value which is shown in books of accounts while market value of asset is the value which is currently same asset is selling in market so both of these values are not same but it can be same but normally they are not same.
Which fixed asset their no charge depreciation?
Land is the only fixed asset which has no depreciation charge because land does not depreciate it's value.
