Indicate whether each of the following statements regarding accounting for long-term assets is true or false.
_____ a) Other things being equal, the lower a company estimates the salvage value of a plant asset to be, the lower the company's net income will be.
_____ b) Depreciation expense is an example of a "non-cash" expense.
_____ c) A company cannot use the double declining method of depreciation for financial statements while using the straight-line method of depreciation for tax returns.
_____ d) The book value of an asset is the amount a company believes it is worth (its fair market-value) as of the date of the balance sheet.
_____ e) MACRS is not an acceptable way of computing depreciation expense under GAAP.

Question

Quizplus · Accepted Answer

The Answer of Indicate whether each of the following statements regarding accounting for long-term assets is true or false.
_____ a) Other things being equal, the lower a company estimates the salvage value of a plant asset to be, the lower the company's net income will be.
_____ b) Depreciation expense is an example of a "non-cash" expense.
_____ c) A company cannot use the double declining method of depreciation for financial statements while using the straight-line method of depreciation for tax returns.
_____ d) The book value of an asset is the amount a company believes it is worth (its fair market-value) as of the date of the balance sheet.
_____ e) MACRS is not an acceptable way of computing depreciation expense under GAAP.

Indicate Whether Each of the Following Statements Regarding Accounting for Long-Term