Question 1

Greetings Online disposed of a van that cost $22,000 with accumulated depreciation of $15,000.The journal entry would include a:

Accepted Answer

A) credit to Van $22,000. 
B) debit to Accumulated Depreciation $15,000. 
C) debit to Loss on Disposal of Plant Asset $7,000. 
D) All of these answers are correct. 
A) credit to Van $22,000. 
B) debit to Accumulated Depreciation $15,000. 
C) debit to Loss on Disposal of Plant Asset $7,000. 
D) All of these answers are correct.

Question 2

Patents,copyrights,and franchises are intangible assets with the same number of years of useful life.

Accepted Answer

A) True 
 B)False

Question 3

The journal entry to record a loss when selling a plant asset would include:

Accepted Answer

A) a credit to accumulated depreciation. 
B) a debit to loss on sale of plant asset. 
C) a debit to the plant asset account. 
D) None of these is correct. 
A) a credit to accumulated depreciation. 
B) a debit to loss on sale of plant asset. 
C) a debit to the plant asset account. 
D) None of these is correct.

Question 4

A gain on disposal of an asset is listed as:

Accepted Answer

A) a liability on the balance sheet. 
B) an asset on the balance sheet. 
C) other expense on the income statement. 
D) other income on the income statement. 
A) a liability on the balance sheet. 
B) an asset on the balance sheet. 
C) other expense on the income statement. 
D) other income on the income statement.

Question 5

A computer server system,which had cost $250,000 and had accumulated depreciation of $170,000,was traded for a new system with a fair market value of $245,000.The old system and cash of $210,000 were given for the new system.Prepare the journal entry for the exchange of these similar assets assuming the income tax method is used to record the exchange.

Accepted Answer

The answer of A computer server system,which had cost $250,000...

Question 6

Which depreciation method deducts residual value when computing depreciation expense?

Accepted Answer

A) Units-of-production 
B) Straight-line 
C) Double declining-balance 
D) Both A and B are correct. 
A) Units-of-production 
B) Straight-line 
C) Double declining-balance 
D) Both A and B are correct.

Question 7

Expenditures for changing oil in a machine or repainting a car would be:

Accepted Answer

A) added to the cost of the asset. 
B) added as a capital expenditure. 
C) charged to an expense account. 
D) added as a betterment. 
A) added to the cost of the asset. 
B) added as a capital expenditure. 
C) charged to an expense account. 
D) added as a betterment.

Question 8

Copyright protection expires 50 years after the author's death.

Accepted Answer

A) True 
 B)False

Question 9

Which if the following would NOT be an example of an intangible asset?

Accepted Answer

A) A copyright 
B) A patent 
C) A franchise 
D) Land 
A) A copyright 
B) A patent 
C) A franchise 
D) Land

Question 10

The exclusive right to produce and sell musical work is called a:

Accepted Answer

A) copyright. 
B) franchise. 
C) patent. 
D) goodwill. 
A) copyright. 
B) franchise. 
C) patent. 
D) goodwill.

Question 11

A truck that cost $28,000 has been owned for 3 years and is traded for another truck for the same purpose.Total accumulated depreciation at the time of trade is $17,600.The trade-in value of the old truck is $10,000 and the new truck has a fair market value of $32,000,the new truck would be recorded at:

Accepted Answer

A) $32,000. 
B) $32,400. 
C) $29,400. 
D) $28,400. 
A) $32,000. 
B) $32,400. 
C) $29,400. 
D) $28,400.

Question 12

According to the MACRS tax rate table,the following classes do NOT use straight-line depreciation:

Accepted Answer

A) residential rental property. 
B) automobiles. 
C) nonresidential real property. 
D) All of the above use straight line depreciation. 
A) residential rental property. 
B) automobiles. 
C) nonresidential real property. 
D) All of the above use straight line depreciation.

Question 13

Which of the following is an example of a land improvement?

Accepted Answer

A) Shrubbery 
B) Fences 
C) Paving a parking lot 
D) All of these answers are correct. 
A) Shrubbery 
B) Fences 
C) Paving a parking lot 
D) All of these answers are correct.

Question 14

Budgeting for items such as equipment and furniture would be considered:

Accepted Answer

A) capital expenses. 
B) capital expenditures. 
C) general expenses. 
D) general expenditures. 
A) capital expenses. 
B) capital expenditures. 
C) general expenses. 
D) general expenditures.

Question 15

The depreciation method that does not base the expense on the passage of time but on the level of use is:

Accepted Answer

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

Question 16

A capital expenditure is recorded in an equity account.

Accepted Answer

A) True 
 B)False

Question 17

Which depreciation method does NOT use the current book value in calculating depreciation expense?

Accepted Answer

A) Straight-line 
B) Double declining-balance 
C) Units-of-production 
D) Both A and C 
A) Straight-line 
B) Double declining-balance 
C) Units-of-production 
D) Both A and C

Question 18

A car is purchased for $30,000 on January 1.It has a 5-year life and a salvage value of $2,000.Compute the annual depreciation expense using the double declining-balance method for all 4 years.

Accepted Answer

Year 1:$12,000 ($30,000 × .4)

Question 19

A purchase of land and buildings would require the use of only one asset account,Land and Buildings.

Accepted Answer

A) True 
 B)False

Question 20

Payments for ordinary maintenance of an asset are called ________.

Accepted Answer

revenue ex

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

Greetings Online disposed of a van that cost $22,000 with accumulated depreciation of $15,000.The journal entry would include a:

Patents,copyrights,and franchises are intangible assets with the same number of years of useful life.

The journal entry to record a loss when selling a plant asset would include:

A gain on disposal of an asset is listed as:

Which depreciation method deducts residual value when computing depreciation expense?

Expenditures for changing oil in a machine or repainting a car would be:

Copyright protection expires 50 years after the author's death.

Which if the following would NOT be an example of an intangible asset?

The exclusive right to produce and sell musical work is called a:

According to the MACRS tax rate table,the following classes do NOT use straight-line depreciation:

Which of the following is an example of a land improvement?

Budgeting for items such as equipment and furniture would be considered:

The depreciation method that does not base the expense on the passage of time but on the level of use is:

A capital expenditure is recorded in an equity account.

Which depreciation method does NOT use the current book value in calculating depreciation expense?

A car is purchased for $30,000 on January 1.It has a 5-year life and a salvage value of $2,000.Compute the annual depreciation expense using the double declining-balance method for all 4 years.

A purchase of land and buildings would require the use of only one asset account,Land and Buildings.

Payments for ordinary maintenance of an asset are called ________.

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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