Property, Plant and Equipment are conventionally presented in the Balance Sheet at _________?
Correct answer: C. Historical cost - Depreciation portion thereof
- A. Replacement cost - Accumulated Depreciation
- B. Historical cost - Salvage Value
- C. Historical cost - Depreciation portion thereof
- D. Original cost adjusted for general price-level changes
Explanation
PPE is normally reported at historical cost less accumulated depreciation, which gives its carrying or net book value. Option C expresses this treatment, although its wording is less precise than “historical cost less accumulated depreciation.”
Report an error
The more specific you are, the faster it gets fixed. A source beats an opinion.
Prefer email? support@testustad.com
About Financial Statements
Financial statements present a business's financial performance and position through the income statement, statement of financial position, cash flow statement and changes in equity. Questions involve preparing and interpreting these statements, adjusting entries, depreciation, closing inventory, accrued and prepaid items, and distinguishing profit from cash flow.
Practise Financial Statements
128 free Financial Statements MCQs from Accounting, each with the correct answer and an explanation. Unlimited attempts, no account needed.
Exams that ask Accounting questions like this
Accounting is on 2 papers prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for every one of them.
More Financial Statements questions
Outstanding salaries is shown as___________?
Insurance prepaid is shown as:___________?
The adjustment to be made for prepaid expenses is____________?
Net sales equals, sales minus:
Short term Assets expected to be converted into cash within 1 year or less than?
An income statement in which each item expressed as percentage of Sale?