Question 1

Intangible assets have unlimited life because they have no physical substance.

Accepted Answer

A) True 
 B)False

Question 2

A truck costing $47,000 was destroyed during a flood. At the date of the flood, the accumulated depreciation on the truck was $22,000. An insurance cheque for $35,000 was received based on the replacement cost of the truck. The entry to record the insurance proceeds and the disposition of the truck will include a

Accepted Answer

A)  gain on disposal of $10,000. 
B)  credit to the Truck account of $12,000. 
C)  credit to the Accumulated Depreciation account for $22,000. 
D)  gain on disposal of $25,000. 
A)  gain on disposal of $10,000. 
B)  credit to the Truck account of $12,000. 
C)  credit to the Accumulated Depreciation account for $22,000. 
D)  gain on disposal of $25,000.

Question 3

When an asset is fully depreciated, the carrying amount of the asset will be

Accepted Answer

A)  nil. 
B)  equal to the trade-in value. 
C)  equal to the residual. 
D)  equal to the fair value. 
A)  nil. 
B)  equal to the trade-in value. 
C)  equal to the residual. 
D)  equal to the fair value.

Intangible assets have unlimited life because they have no physical substance.

When an asset is fully depreciated, the carrying amount of the asset will be

Accounting in Action

The Recording Process

Adjusting the Accounts

Completion of the Accounting Cycle

Accounting for Merchandising Operations

Inventory Costing

Internal Control and Cash

Current Liabilities

Accounting Principles

Accounting for Partnerships

Introduction to Corporations

Corporations: Additional Topics and Ifrs

Non-Current Liabilities

The Cash Flow Statement

Financial Statement Analysis

Investments

Filters

Exam 9: Long-Lived Assets

Intangible assets have unlimited life because they have no physical substance.

When an asset is fully depreciated, the carrying amount of the asset will be

Accounting in Action

The Recording Process

Adjusting the Accounts

Completion of the Accounting Cycle

Accounting for Merchandising Operations

Inventory Costing

Internal Control and Cash

Current Liabilities

Accounting Principles

Accounting for Partnerships

Introduction to Corporations

Corporations: Additional Topics and Ifrs

Non-Current Liabilities

The Cash Flow Statement

Financial Statement Analysis

Investments

Filters