Question 1

Residual value is deducted in calculating depreciation expense in the declining-balance method.

Accepted Answer

A) True 
 B)False

Question 2

Which one of the following does not depreciate?

Accepted Answer

A) Building 
B) Land 
C) Truck 
D) Computer 
E) None of these 
A) Building 
B) Land 
C) Truck 
D) Computer 
E) None of these

Question 3

The Modified Accelerated Cost Recovery System must be used for both financial and tax reporting.

Accepted Answer

A) True 
 B)False

Question 4

For partial-years depreciation, if an asset is purchased on February 8, how many months' depreciation will be taken for the year?

Accepted Answer

A) 12 
B) 11 
C) 10 
D) 9 
E) None of these 
A) 12 
B) 11 
C) 10 
D) 9 
E) None of these

Question 5

A truck costs $8,000 with a residual value of $1,000. The truck is expected to have a useful life of 70,000 miles. Assuming the truck is driven 15,000 miles the first year, the depreciation expense would be:

Accepted Answer

A) $1,714 
B) $1,500 
C) $1,174 
D) $1,505 
E) None of these 
A) $1,714 
B) $1,500 
C) $1,174 
D) $1,505 
E) None of these

Question 6

A truck costs $16,000 with a residual value of $1,000. It has an estimated useful life of five years. If the truck was bought on July 3, what would be the book value at the end of year 1 using straight-line rate?

Accepted Answer

A) $16,000 
B) $12,500 
C) $14,500 
D) $1,500 
E) None of these 
A) $16,000 
B) $12,500 
C) $14,500 
D) $1,500 
E) None of these

Question 7

Roche Pharma provides company cars for its salespeople that cost an average of $25,000. Using the class recovery system of five years, what is the depreciation expense in year 2 of the MACRS?

Accepted Answer

A) $8,000 
B) $25,000 
C) $17,000 
D) $5,000 
E) None of these 
A) $8,000 
B) $25,000 
C) $17,000 
D) $5,000 
E) None of these

Question 8

The book value in the units-of-production method should never go below the residual value.

Accepted Answer

A) True 
 B)False

Question 9

Accumulated depreciation records the history of depreciation taken to date.

Accepted Answer

A) True 
 B)False

Question 10

Residual value means the actual cash one receives at end of the life of the asset.

Accepted Answer

A) True 
 B)False

Question 11

If a car is driven strictly for pleasure, it still can be depreciated.

Accepted Answer

A) True 
 B)False

Question 12

Trade-in value is the same as the residual value.

Accepted Answer

A) True 
 B)False

Question 13

Karen Knoll Co. bought a machine that cost $8,000. The residual value is $1,000, and the machine life is estimated at four years. Can you prepare a depreciation schedule assuming twice the straight-line rate? Karen uses the declining-balance method.

Accepted Answer

@#IMG-DLM& No depreciation exp

Residual value is deducted in calculating depreciation expense in the declining-balance method.

Which one of the following does not depreciate?

The Modified Accelerated Cost Recovery System must be used for both financial and tax reporting.

For partial-years depreciation, if an asset is purchased on February 8, how many months' depreciation will be taken for the year?

A truck costs $8,000 with a residual value of $1,000. The truck is expected to have a useful life of 70,000 miles. Assuming the truck is driven 15,000 miles the first year, the depreciation expense would be:

A truck costs $16,000 with a residual value of $1,000. It has an estimated useful life of five years. If the truck was bought on July 3, what would be the book value at the end of year 1 using straight-line rate?

Roche Pharma provides company cars for its salespeople that cost an average of $25,000. Using the class recovery system of five years, what is the depreciation expense in year 2 of the MACRS?

The book value in the units-of-production method should never go below the residual value.

Accumulated depreciation records the history of depreciation taken to date.

Residual value means the actual cash one receives at end of the life of the asset.

If a car is driven strictly for pleasure, it still can be depreciated.

Trade-in value is the same as the residual value.

Karen Knoll Co. bought a machine that cost $8,000. The residual value is $1,000, and the machine life is estimated at four years. Can you prepare a depreciation schedule assuming twice the straight-line rate? Karen uses the declining-balance method.

Whole Number: How to Dissect and Solve Word Problems

Fractions

Decimals

Banking

Solving for the Unknown: a How to Approach to Solving Equations

Percents and Their Applications

Discounts: Trade and Cash

Markups and Markdowns: Perishables and Breakeven Analysis

Payroll

Simple Interest

Promissory Notes, Simple Discount Notes and the Discount Process

Compound Interest and Present Value

Annuities and Sinking Funds

Installment Buying

The Cost of Home Ownership

How to Read, Analyze, and Interpret Financial Reports

Inventory and Overhead

Sales Excise and Property Taxes

Life, Fire and Auto Insurance

Stocks, Bonds and Mutual Funds

Business Statistics

Filters

Exam 17: Appreciation

Residual value is deducted in calculating depreciation expense in the declining-balance method.

Which one of the following does not depreciate?

The Modified Accelerated Cost Recovery System must be used for both financial and tax reporting.

For partial-years depreciation, if an asset is purchased on February 8, how many months' depreciation will be taken for the year?

A truck costs $8,000 with a residual value of $1,000. The truck is expected to have a useful life of 70,000 miles. Assuming the truck is driven 15,000 miles the first year, the depreciation expense would be:

A truck costs $16,000 with a residual value of $1,000. It has an estimated useful life of five years. If the truck was bought on July 3, what would be the book value at the end of year 1 using straight-line rate?

Roche Pharma provides company cars for its salespeople that cost an average of $25,000. Using the class recovery system of five years, what is the depreciation expense in year 2 of the MACRS?

The book value in the units-of-production method should never go below the residual value.

Accumulated depreciation records the history of depreciation taken to date.

Residual value means the actual cash one receives at end of the life of the asset.

If a car is driven strictly for pleasure, it still can be depreciated.

Trade-in value is the same as the residual value.

Karen Knoll Co. bought a machine that cost $8,000. The residual value is $1,000, and the machine life is estimated at four years. Can you prepare a depreciation schedule assuming twice the straight-line rate? Karen uses the declining-balance method.

Whole Number: How to Dissect and Solve Word Problems

Fractions

Decimals

Banking

Solving for the Unknown: a How to Approach to Solving Equations

Percents and Their Applications

Discounts: Trade and Cash

Markups and Markdowns: Perishables and Breakeven Analysis

Payroll

Simple Interest

Promissory Notes, Simple Discount Notes and the Discount Process

Compound Interest and Present Value

Annuities and Sinking Funds

Installment Buying

The Cost of Home Ownership

How to Read, Analyze, and Interpret Financial Reports

Inventory and Overhead

Sales Excise and Property Taxes

Life, Fire and Auto Insurance

Stocks, Bonds and Mutual Funds

Business Statistics

Filters