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Regarding the Relationships of Depreciation Expense,book Value,and Accumulated Depreciation,state Whether

Question 65

Matching

Regarding the relationships of depreciation expense,book value,and accumulated depreciation,state whether each of the following statements is true or false.

Premises:

Responses:

The amount of depreciation expense recognized each year is added to the beginning balance of accumulated depreciation account to determine the ending balance of accumulated depreciation account.

False

To determine the book value of a long-term asset,the balance in the accumulated depreciation account must be subtracted from current market value of the asset.

True

The amount of accumulated depreciation gets smaller every year that passes.

The salvage value is the expected selling value of an asset at the end of its useful life.

Premises:

The amount of depreciation expense recognized each year is added to the beginning balance of accumulated depreciation account to determine the ending balance of accumulated depreciation account.

To determine the book value of a long-term asset,the balance in the accumulated depreciation account must be subtracted from current market value of the asset.

The amount of accumulated depreciation gets smaller every year that passes.

The salvage value is the expected selling value of an asset at the end of its useful life.

Responses:

False

True

Correct Answer:

Premises:

Responses:

The amount of depreciation expense recognized each year is added to the beginning balance of accumulated depreciation account to determine the ending balance of accumulated depreciation account.

To determine the book value of a long-term asset,the balance in the accumulated depreciation account must be subtracted from current market value of the asset.

The amount of accumulated depreciation gets smaller every year that passes.

The salvage value is the expected selling value of an asset at the end of its useful life.

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