Which of the Following Is True About Accounting for Fixed

question 69

Multiple Choice

Which of the following is true about accounting for fixed assets?

• A)Depreciation expense under IFRS will likely be higher than under GAAP,because acquisitions of assets with multiple components must be separately depreciated under IFRS,whereas under GAAP assets could be bundled and depreciated over the longest of the useful life for any of the components.
• B)IFRS doesn't allow capitalization of any asset that separately accounts for less than 20% of total assets.
• C)Depreciation expense under IFRS will likely be less than under GAAP,because standards for depreciable lives on asset classes are much longer than under GAAP.
• D)IFRS and GAAP account for fixed assets in much the same way.

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Definitions:

Proprioceptors

Sensory receptors located in muscles and tendons that provide information about body position and movement.

Visceroreceptors

Sensory receptors located within the internal organs that detect changes and provide feedback about the body's internal environment.

Photoreceptors

Cells in the retina of the eye that convert light into electrical signals for vision.

Vision

Vision is the ability to perceive the environment through light in the visible spectrum that is detected by the eyes and interpreted by the brain.