The portion of the acquisition cost of the asset yet to be allocated is known as___________?
Correct answer: D. Written down value
- A. Residual Value
- B. Accumulated value
- C. Salvage value
- D. Written down value
Explanation
The acquisition cost remaining after accumulated depreciation is deducted is the written-down value, also called the book value or carrying amount. Salvage or residual value is only the estimated amount recoverable at the end of useful life.
Report an error
The more specific you are, the faster it gets fixed. A source beats an opinion.
Prefer email? [email protected]
About Accounting Principles
Accounting principles explain the rules used to record, classify and report business transactions. Coverage includes the accounting equation, double-entry system, accrual and cash bases, matching and prudence concepts, consistency, going concern, business entity, and the difference between capital and revenue items.
Practise Accounting Principles
351 free Accounting Principles MCQs from Accounting, each with the correct answer and an explanation. Unlimited attempts, no account needed.
Discussion
Stuck on an option, or know a faster way to get there? Ask or explain it here.
No comments yet. Be the first to explain this one.
Exams that ask Accounting questions like this
Accounting is on 3 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 Accounting Principles questions
Which of the following statements is true with regard to written down value method of depreciation?i. The rate at which the asset is written off reduces year after year ii. The amount of depreciation provided reduces from year to year iii. The rate of depreciation as well as the amount of depreciation reduce year after year iv. The value of the asset gets reduced to zero over a period of time
Which of the following factors are primarily considered to determine the economic life of an asset?
In which of the following methods, the cost of the asset is spread over in equal proportion during its useful economic life?
Depreciation is a process of____________?
Which of the following statements best describes the purpose of depreciation?
Which of the following is true with respect to providing depreciation under diminishing balance method?