Fixed Assets That Are Depreciated Are Sometimes Called

question 121

Multiple Choice

Fixed assets that are depreciated are sometimes called:

• A)Accounts Payable.
• B)current assets.
• C)long-term assets.
• D)long-term liabilities.

---

Definitions:

Consolidation

The process of combining financial statements of a parent company with its subsidiaries to present as if the group of companies is a single economic entity.

Accumulated Depreciation

The total amount of depreciation expense that has been recorded for a long-term asset since its acquisition.

Consolidation Purposes

The process of combining the financial statements of a parent company and its subsidiaries into one comprehensive financial statement package, to present as if the group were a single entity.

Excess Amortizations

The amount by which amortization expense exceeds the amount necessary to amortize the cost of a tangible or intangible asset over its useful life.