Question

Meaning of replacing fixed asset ?! There are two types of replacing fixed asset: (fixed asset...

Meaning of replacing fixed asset ?!

There are two types of replacing fixed asset: (fixed asset usage)(fixed asset life) explain each of them ?! with giving suitable examples

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Replacing fixed asset means substituting the current /present fixed asset with an equally valued or similar asset

Fixed Asset Usage replacement is where a part of the fixed asset is replaced and is treated as a revenue expenditure as did does not increase the value or life of the present asset example a conveyor belt of a machine is replaced . It does not increase the value or life of the enitre machine in totality.

Fixed Asset Life is where the entire asset is replaced with a another asset or any major part is replaced with enhances the value and the life of the machinery and is treated as a capital expendiure and is capitalized example where an entire processing machine is replaced with a similar machine or an annexure is conrtructed to an existing building.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Meaning of replacing fixed asset ?! There are two types of replacing fixed asset: (fixed asset...
Meaning of replacing fixed asset ?! There are two types of replacing fixed asset: (fixed asset usage)(fixed asset life) explain each of them ?! with giving suitable examples Also, must be provided justification and rationale for replacement
Which of the following below is an example of increasing the life on a fixed asset?...
Which of the following below is an example of increasing the life on a fixed asset? a.cleaning the carpet in the front room of the building b. tune up for a company truck c. replacing an engine in a company car d. replacing all burned out light bulbs in the factory
Two types of materials are used as follows: Minimum usage 20 units per week each Maximum...
Two types of materials are used as follows: Minimum usage 20 units per week each Maximum usage 60 units per week each Normal usage 40 units per week each Re-order period or Lead time Material A: 3 to 5 weeks Material B: 2 to 4 weeks Calculate reorder point for two types of materials?
Use two examples that explain the relative effects of gene and the environment on different types...
Use two examples that explain the relative effects of gene and the environment on different types of variations
2.1 There is a tool (way) to manage business risk. It has four parts. Explain each...
2.1 There is a tool (way) to manage business risk. It has four parts. Explain each of them giving examples. A. a. b. c. d. 2.2 Record the audit process in an appropriate manner Lucy has also come to know of working papers. She is not too sure why they should be so important. Required - Explain the following: a. Two types of working papers. b. 5 reasons auditors need working papers.
Job Order and Process Costing a.Select two (2) of the following types of companies and explain...
Job Order and Process Costing a.Select two (2) of the following types of companies and explain whether each would use job order or process costing. Be sure to explain and support your answers. 1.A law firm 2.An oil refinery 3.A soda manufacturer 4.A custom-home builder b.For each of the two types of companies selected above, give at least one example each of the following costs each company might incur. Fully explain your examples. 1.Direct material 2.Direct labor 3.Manufacturing overhead 4.Selling...
Explain the difference between direct costs, fixed costs, and general expenses. Give two examples of each.
Explain the difference between direct costs, fixed costs, and general expenses. Give two examples of each.
The expected average rate of return for a proposed investment of $565,900 in a fixed asset...
The expected average rate of return for a proposed investment of $565,900 in a fixed asset with a useful life of 4 years, straight-line depreciation, no residual value, and an expected total income of $309,080 for the 4 years is (round to two decimal places) a.1.09% b.0.55% c.13.65% d.27.31%
The expected average rate of return for a proposed investment of $776,000 in a fixed asset,...
The expected average rate of return for a proposed investment of $776,000 in a fixed asset, with a useful life of four years, straight-line depreciation, no residual value, and an expected total net income of $245,000 for the four years, is (round to two decimal points). a.15.79% b.7.90% c.31.57% d.13.90%
Explain the difference between nominal variables and real variables giving two examples of each. According to...
Explain the difference between nominal variables and real variables giving two examples of each. According to the classical dichotomy, which of these two sets of variables are affected by a change in money supply.
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT