Question 1

Under MACRS,furniture is depreciated over seven years.

Accepted Answer

A) True 
 B)False  True

Question 2

To calculate the double declining-balance rate,you would use half the straight line rate.

Accepted Answer

A) True 
 B)False  False

Question 3

For each of the following, identify in column 1 the category to which the account belongs, in column 2 the normal balance for the account, in column 3 the financial statement that the account in which the account balance is reported, and in column 4 the account's nature (permanent/temporary).
-

Accepted Answer

The answer of For each of the following, identify in...

Question 4

For each of the following, identify in column 1 the category to which the account belongs, in column 2 the normal balance for the account, in column 3 the financial statement that the account in which the account balance is reported, and in column 4 the account's nature (permanent/temporary).
-

Accepted Answer

The answer of For each of the following, identify in...

Question 5

The depreciation method that ignores the salvage value is ________.

Accepted Answer

double dec

Question 6

For each of the following, identify in column 1 the category to which the account belongs, in column 2 the normal balance for the account, in column 3 the financial statement that the account in which the account balance is reported, and in column 4 the account's nature (permanent/temporary).
-

Accepted Answer

The answer of For each of the following, identify in...

Question 7

Gains incurred in selling or trading assets are always recognized.

Accepted Answer

A) True 
 B)False

Question 8

Jason Moore purchased computer equipment for $5,000 on January 1,2015.It has a residual value of $200 with a useful life of 6 years.After the appropriate adjusting entries have been made,the balance in Accumulated Depreciation account for this asset on January 1,2017,under the straight-line method,should be:

Accepted Answer

A) $800. 
B) $1,600. 
C) $2,400. 
D) $3,200. 
A) $800. 
B) $1,600. 
C) $2,400. 
D) $3,200.

Question 9

For each of the following, identify in column 1 the category to which the account belongs, in column 2 the normal balance for the account, in column 3 the financial statement that the account in which the account balance is reported, and in column 4 the account's nature (permanent/temporary).
-$$\begin{array} { | l | l | l | l | l | } 
\hline & \text { Column } 1 & \text { Column } 2 & \text { Column } 3 & \text { Column } 4 \
\hline \begin{array} { l } 
\text { Depreciation } \
\text { expense }
\end{array} & & & & \
\hline
\end{array}$$

Accepted Answer

The answer of For each of the following, identify in...

Question 10

For tax purposes,________ establishes the guidelines and the percentages for depreciation.

Accepted Answer

The answer of For tax purposes,________ establishes the guidelines and...

Question 11

A depreciation method that allocates depreciation of a plant asset based on the Tax Act of 1989 is the:

Accepted Answer

A) straight-line method. 
B) units-of-production method. 
C) modified accelerated cost recovery method. 
D) double declining-balance method. 
A) straight-line method. 
B) units-of-production method. 
C) modified accelerated cost recovery method. 
D) double declining-balance method.

Question 12

For each of the following, identify in column 1 the category to which the account belongs, in column 2 the normal balance for the account, in column 3 the financial statement that the account in which the account balance is reported, and in column 4 the account's nature (permanent/temporary).
-$$\begin{array} { | l | l | l | l | l | } 
\hline & \text { Column 1 } & \text { Column } 2 & \text { Column } 3 & \text { Column } 4 \
\hline \text { Gain from sale of } & & & & \
\text { plant asset }\\hline
\end{array}$$

Accepted Answer

The answer of For each of the following, identify in...

Question 13

A piece of equipment is purchased for $78,000 on January 1.It has a 5-year life and a salvage value of $8,000.Compute the annual depreciation expense using the double declining-balance method for all 5 years.

Accepted Answer

Year 1:$31,200 ($78,000 × .4)

Question 14

Land Improvements is an asset account that records improvements to land that have a limited life.

Accepted Answer

A) True 
 B)False

Question 15

The portion of a natural resource cost that is recognized as an expense is ________.

Accepted Answer

The answer of The portion of a natural resource cost...

Question 16

J.Long purchased computer equipment for $7,000 on January 1,2015.It has a residual value of $700 with a useful life of 5 years.After the appropriate adjusting entry is made,the book value of the asset on December 31,2015,under the double declining-balance method,is:

Accepted Answer

A) $4,000. 
B) $4,200. 
C) $3,000. 
D) $4,100. 
A) $4,000. 
B) $4,200. 
C) $3,000. 
D) $4,100.

Question 17

Using MACRS rates for a 15 and 20-year property,what is the percentage for the depreciable rate?

Accepted Answer

A) 200 percent 
B) 150 percent 
C) 125 percent 
D) 100 percent 
A) 200 percent 
B) 150 percent 
C) 125 percent 
D) 100 percent

Question 18

Define and compare capital expenditures and revenue expenditures.

Accepted Answer

Capital expenditures include the origina

Question 19

If there are repairs needed in the process of installation of machine,this should not be charged to the cost of the machine.

Accepted Answer

A) True 
 B)False

Question 20

For each of the following, identify in column 1 the category to which the account belongs, in column 2 the normal balance for the account, in column 3 the financial statement that the account in which the account balance is reported, and in column 4 the account's nature (permanent/temporary).
-$$\begin{array} { | l | l | l | l | l | } 
\hline & \text { Column 1 } & \text { Column 2 } & \text { Column 3 } & \text { Column 4 } \
\hline \text { Goodwill } & & & & \
\hline
\end{array}$$

Accepted Answer

The answer of For each of the following, identify in...

Exam 16: Accounting for Property,plant,equipment,and Intangible Assets

Under MACRS,furniture is depreciated over seven years.

To calculate the double declining-balance rate,you would use half the straight line rate.

For each of the following, identify in column 1 the category to which the account belongs, in column 2 the normal balance for the account, in column 3 the financial statement that the account in which the account balance is reported, and in column 4 the account's nature (permanent/temporary). -

For each of the following, identify in column 1 the category to which the account belongs, in column 2 the normal balance for the account, in column 3 the financial statement that the account in which the account balance is reported, and in column 4 the account's nature (permanent/temporary). -

The depreciation method that ignores the salvage value is ________.

For each of the following, identify in column 1 the category to which the account belongs, in column 2 the normal balance for the account, in column 3 the financial statement that the account in which the account balance is reported, and in column 4 the account's nature (permanent/temporary). -

Gains incurred in selling or trading assets are always recognized.

For tax purposes,________ establishes the guidelines and the percentages for depreciation.

A depreciation method that allocates depreciation of a plant asset based on the Tax Act of 1989 is the:

A piece of equipment is purchased for $78,000 on January 1.It has a 5-year life and a salvage value of $8,000.Compute the annual depreciation expense using the double declining-balance method for all 5 years.

Land Improvements is an asset account that records improvements to land that have a limited life.

The portion of a natural resource cost that is recognized as an expense is ________.

J.Long purchased computer equipment for $7,000 on January 1,2015.It has a residual value of $700 with a useful life of 5 years.After the appropriate adjusting entry is made,the book value of the asset on December 31,2015,under the double declining-balance method,is:

Using MACRS rates for a 15 and 20-year property,what is the percentage for the depreciable rate?

Define and compare capital expenditures and revenue expenditures.

If there are repairs needed in the process of installation of machine,this should not be charged to the cost of the machine.

Accounting Concepts and Procedures

Debits and Credits: Analyzing and Recording Business Transactions

Beginning the Accounting Cycle

The Accounting Cycle Continued

The Accounting Cycle Completed

Banking Procedure and Control of Cash

Calculating Pay and Payroll Taxes: the Beginning of the Payroll Process

Paying,recording,and Reporting Payroll and Payroll Taxes:

Sales and Cash Receipts

Purchases and Cash Payments

Preparing a Worksheet for a Merchandise Company

Completion of the Accounting Cycle for a Merchandise Company

Accounting for Bad Debts

Notes Receivable and Notes Payable

Accounting for Merchandise Inventory

Partnership

Corporations: Organizations and Stock

Corporations: Stock Values,dividends,treasury Stocks,

Corporations and Bonds Payable

Statement of Cash Flows

Analyzing Financial Statements

The Voucher System

Departmental Accounting

Manufacturing Accounting

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