regarding the relationships of depreciation expense, book value, and accumulated depreciation, state whether…

regarding the relationships of depreciation expense, book value, and accumulated depreciation, state whether each of the following statements is true or false.\na) 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\n b) the amount of accumulated depreciation gets smaller every year that passes. true\n c) 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\n d) the salvage value is the expected selling value of an asset at the end of its useful life. false

regarding the relationships of depreciation expense, book value, and accumulated depreciation, state whether each of the following statements is true or false.\na) 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\n b) the amount of accumulated depreciation gets smaller every year that passes. true\n c) 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\n d) the salvage value is the expected selling value of an asset at the end of its useful life. false

Answer

Brief Explanations:

a) Book value of a long - term asset is calculated by subtracting accumulated depreciation from the asset's cost, not current market value. So it's false. b) Accumulated depreciation increases over time as depreciation expense is added each year, so it's false. c) Depreciation expense of each year is added to the beginning balance of accumulated depreciation to get the ending balance, so it's true. d) Salvage value is the expected value of an asset at the end of its useful life, which can be a selling value in some cases, so it's true.

Answer:

a) False b) False c) True d) True