Check All That Apply 1 Depreciation is recorded as a period expense in the income statement. The cost of an acquisition of equipment is initially recorded as an asset. The cost of an acquisition of equipment is allocated to depletion expense over the reporting periods benefited by its use For equipment used in the manufacture of a product, depreciation is considered a product cost to be included as part of the cost of inventory. Knowledge Check 01 Match the term and the definition. 1. 2. Allocate using measure of input or output Allocate according to the passage of time Amount expected to be received at end of asset's service life, less any anticipated disposal costs Capitalized cost minus estimated residual value Estimated use that the company expects to receive from the asset 4. 5. Nuwuye CIRRUS Which of the following statements are true regarding potential impairment of intangible assets with indefinite lives? (Select all that apply.) Check All That Apply 1 A qualitative assessment must be undertaken at least annually o this typ This type of asset should be tested for impairment whenever events or changes in circumstances indicate that it is more likely than not that the asset is impaired book value exceeds fair value, an impairment loss is recognized for the difference. Recovery of impairment losses are permitted for this type of asset. 10 11 Check All That Apply 1 Depreciation is recorded as a period expense in the income statement. The cost of an acquisition of equipment is initially recorded as an asset. The cost of an acquisition of equipment is allocated to depletion expense over the reporting periods benefited by its use For equipment used in the manufacture of a product, depreciation is considered a product cost to be included as part of the cost of inventory. Knowledge Check 01 Match the term and the definition. 1. 2. Allocate using measure of input or output Allocate according to the passage of time Amount expected to be received at end of asset's service life, less any anticipated disposal costs Capitalized cost minus estimated residual value Estimated use that the company expects to receive from the asset 4. 5. Nuwuye CIRRUS Which of the following statements are true regarding potential impairment of intangible assets with indefinite lives? (Select all that apply.) Check All That Apply 1 A qualitative assessment must be undertaken at least annually o this typ This type of asset should be tested for impairment whenever events or changes in circumstances indicate that it is more likely than not that the asset is impaired book value exceeds fair value, an impairment loss is recognized for the difference. Recovery of impairment losses are permitted for this type of asset. 10 11