Question 1

Copyrights will depreciate.

Accepted Answer

A) True 
 B)False  False

Question 2

Depreciation expense is located on the:

Accepted Answer

A)  Income statement 
B)  Balance sheet 
C)  Both A and B 
D)  None of these 
E)  All of these 
A)  Income statement 
B)  Balance sheet 
C)  Both A and B 
D)  None of these 
E)  All of these A

Question 3

Using the declining-balance method, complete the table as shown (twice the straight-line rate):
Auto: $26,000
Estimated life: 10 years
Residual value: $600

Accepted Answer

The answer of Using the declining-balance method, complete the table...

Question 4

Book value is cost plus accumulated depreciation.

Accepted Answer

A) True 
 B)False

Question 5

Which one is not based on the passage of time?

Accepted Answer

A)  Straight-line method 
B)  Declining-balance method 
C)  Units-of-production method 
D)  None of these 
E)  All of these 
A)  Straight-line method 
B)  Declining-balance method 
C)  Units-of-production method 
D)  None of these 
E)  All of these

Question 6

If a car is depreciated in four years, the rate of depreciation using twice the straight-line rate is:

Accepted Answer

A)  25% 
B)  50% 
C)  100% 
D)  75% 
E)  None of these 
A)  25% 
B)  50% 
C)  100% 
D)  75% 
E)  None of these

Question 7

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 8

Residual value is not used in calculating the depreciation expense per unit of product, miles driven, etc.

Accepted Answer

A) True 
 B)False

Question 9

A truck costs $35,000 with a residual value of $2,000. Its service life is five years. Using the declining-balance method at twice the straight-line rate, the book value at the end of year 2 is:

Accepted Answer

A)  $35,000 
B)  $22,000 
C)  $12,600 
D)  $33,000 
E)  None of these 
A)  $35,000 
B)  $22,000 
C)  $12,600 
D)  $33,000 
E)  None of these

Question 10

MACRS does not use residual value; thus, assets are depreciated to zero.

Accepted Answer

A) True 
 B)False

Question 11

Depreciation expense in the declining-balance method is calculated by the depreciation rate:

Accepted Answer

A)  Times book value at beginning of year 
B)  Plus book value at end of year 
C)  Divided by book value at beginning of year 
D)  Times accumulated depreciation at year end 
E)  None of these 
A)  Times book value at beginning of year 
B)  Plus book value at end of year 
C)  Divided by book value at beginning of year 
D)  Times accumulated depreciation at year end 
E)  None of these

Question 12

A new piece of equipment costs $18,000 with a residual value of $600 and an estimated useful life of five years. Assuming twice the straight-line rate, the book value at the end of year 2 using the declining-balance method is:

Accepted Answer

A)  $7,200 
B)  $6,480 
C)  $11,520 
D)  $18,000 
E)  None of these 
A)  $7,200 
B)  $6,480 
C)  $11,520 
D)  $18,000 
E)  None of these

Question 13

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 14

A truck costs $9,200 with a residual value of $1,000. It is estimated that the useful life of the truck is four years. The amount of depreciation expense in year 2 using the declining-balance method at twice the straight-line rate is:

Accepted Answer

A)  $2,300 
B)  $4,600 
C)  $3,200 
D)  $6,400 
E)  None of these 
A)  $2,300 
B)  $4,600 
C)  $3,200 
D)  $6,400 
E)  None of these

Question 15

A depreciation schedule for partial years must cover at least three years.

Accepted Answer

A) True 
 B)False

Question 16

In the straight-line method, book value never goes below the residual value.

Accepted Answer

A) True 
 B)False

Question 17

Product obsolescence means the asset has been fully depreciated.

Accepted Answer

A) True 
 B)False

Question 18

In a straight-line depreciation schedule, the depreciation expense is the same each year.

Accepted Answer

A) True 
 B)False

Question 19

Land can be depreciated.
Land cannot be depreciated.

Accepted Answer

A) True 
 B)False

Question 20

Joe Wong, owner of Cookie Palace, is discussing with his accountant which method of depreciation would be best for his new delivery truck. The cost of the truck is $20,000 with an estimated life of four years. The residual value of the truck is $2,500. Prepare a depreciation schedule using the declining-balance method at twice the straight-line rate.

Accepted Answer

The answer of Joe Wong, owner of Cookie Palace, is...

Copyrights will depreciate.

Depreciation expense is located on the:

Using the declining-balance method, complete the table as shown (twice the straight-line rate): Auto: $26,000 Estimated life: 10 years Residual value: $600

Book value is cost plus accumulated depreciation.

Which one is not based on the passage of time?

If a car is depreciated in four years, the rate of depreciation using twice the straight-line rate is:

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:

Residual value is not used in calculating the depreciation expense per unit of product, miles driven, etc.

A truck costs $35,000 with a residual value of $2,000. Its service life is five years. Using the declining-balance method at twice the straight-line rate, the book value at the end of year 2 is:

MACRS does not use residual value; thus, assets are depreciated to zero.

Depreciation expense in the declining-balance method is calculated by the depreciation rate:

A new piece of equipment costs $18,000 with a residual value of $600 and an estimated useful life of five years. Assuming twice the straight-line rate, the book value at the end of year 2 using the declining-balance method is:

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?

A truck costs $9,200 with a residual value of $1,000. It is estimated that the useful life of the truck is four years. The amount of depreciation expense in year 2 using the declining-balance method at twice the straight-line rate is:

A depreciation schedule for partial years must cover at least three years.

In the straight-line method, book value never goes below the residual value.

Product obsolescence means the asset has been fully depreciated.

In a straight-line depreciation schedule, the depreciation expense is the same each year.

Land can be depreciated. Land cannot be depreciated.

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Sales, Excise, and Property Taxes

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Markups and Markdowns: Perishables and Breakeven Analysis

How to Read, Analyze, and Interpret Financial Reports

Inventory and Overhead

Simple Interest

Promissory Notes, Simple Discount Notes, and the Discount Process

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Exam 14: Depreciation

Copyrights will depreciate.

Depreciation expense is located on the:

Using the declining-balance method, complete the table as shown (twice the straight-line rate): Auto: $26,000 Estimated life: 10 years Residual value: $600

Book value is cost plus accumulated depreciation.

Which one is not based on the passage of time?

If a car is depreciated in four years, the rate of depreciation using twice the straight-line rate is:

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:

Residual value is not used in calculating the depreciation expense per unit of product, miles driven, etc.

A truck costs $35,000 with a residual value of $2,000. Its service life is five years. Using the declining-balance method at twice the straight-line rate, the book value at the end of year 2 is:

MACRS does not use residual value; thus, assets are depreciated to zero.

Depreciation expense in the declining-balance method is calculated by the depreciation rate:

A new piece of equipment costs $18,000 with a residual value of $600 and an estimated useful life of five years. Assuming twice the straight-line rate, the book value at the end of year 2 using the declining-balance method is:

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?

A truck costs $9,200 with a residual value of $1,000. It is estimated that the useful life of the truck is four years. The amount of depreciation expense in year 2 using the declining-balance method at twice the straight-line rate is:

A depreciation schedule for partial years must cover at least three years.

In the straight-line method, book value never goes below the residual value.

Product obsolescence means the asset has been fully depreciated.

In a straight-line depreciation schedule, the depreciation expense is the same each year.

Land can be depreciated. Land cannot be depreciated.

Problem Solving With Math

Fractions

Decimals

Solving for the Unknown

Business Statistics

Banking and Budgeting

Payroll and Income Tax

Sales, Excise, and Property Taxes

Risk Management

Installment Buying and Revolving Charge Credit Cards

Discounts: Trade and Cash

Markups and Markdowns: Perishables and Breakeven Analysis

How to Read, Analyze, and Interpret Financial Reports

Inventory and Overhead

Simple Interest

Promissory Notes, Simple Discount Notes, and the Discount Process

The Cost of Home Ownership

Compound Interest and Present Value

Annuities and Sinking Funds

Stocks, Bonds, and Mutual Funds

Filters