Question 1

Long-term marketable securities, such as five-year held-to-maturity securities, would be listed last in the long-term assets portion of a company's balance sheet.

Accepted Answer

A) True 
 B)False

Question 2

Plant assets can be called fixed assets or physical assets.

Accepted Answer

A) True 
 B)False

Question 3

The cost of furniture and fixtures, such as desks, chairs and other items, includes its basic cost plus all other costs to ready the asset for its intended use.

Accepted Answer

A) True 
 B)False

Question 4

For which kind of marketable securities are any unrealized gains and losses shown on the income
statement?

Accepted Answer

The answer of For which kind of marketable securities are...

Question 5

A company expenses the cost of a betterment by debiting Repair and Maintenance Expense, rather
than capitalizing it (debiting an asset). What effect would this error have on the income statement?

Accepted Answer

Repairs and Maintena

Question 6

When an asset is disposed, the current period's depreciation expense account must be updated to the time of the disposal.

Accepted Answer

A) True 
 B)False

Question 7

What do you obtain when you take the cost divided by the total amount of the natural resource?

Accepted Answer

Depletion

Question 8

Information needed to compute a depletion charge per unit includes the:

Accepted Answer

A)  estimated total amount of resources available for removal. 
B)  amount of resources removed during the period. 
C)  cumulative amount of resources removed. 
D)  amount of resources sold during the period. 
A)  estimated total amount of resources available for removal. 
B)  amount of resources removed during the period. 
C)  cumulative amount of resources removed. 
D)  amount of resources sold during the period.

Question 9

On September 9, Ariana Company paid $15,300 to purchase a front end loader for its Tractor #2.
What is the journal entry to record this?

Accepted Answer

The answer of On September 9, Ariana Company paid $15,300...

Question 10

Intangibles, such as patents and copyrights, are listed after property, plant, and equipment and after natural resources on a company's long-term assets portion of the balance sheet.

Accepted Answer

A) True 
 B)False

Question 11

Book value is depreciable cost minus accumulated depreciation.

Accepted Answer

A) True 
 B)False

Question 12

A van that cost $23,700 and had accumulated depreciation of $21,000 was sold for $1,250.
Record the journal entry required.

Accepted Answer

The answer of A van that cost $23,700 and had...

Question 13

Depreciation is based upon cost, useful life, and salvage value.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following would NOT be considered as part of the cost of the land?

Accepted Answer

A)  Survey 
B)  Realtor commissions 
C)  Paving 
D)  Unpaid property taxes on the land 
E)  Legal fees 
A)  Survey 
B)  Realtor commissions 
C)  Paving 
D)  Unpaid property taxes on the land 
E)  Legal fees

Question 15

Rick Corporation purchased a vein of coal ore for $5,250,000. It is estimated that 30,000,000 tons of ore are available to be extracted. The residual value is determined to be $250,000. The estimated depletion expense for this year's extraction of 2,750,000 tons of ore (rounded to the nearest dollar) is:

Accepted Answer

A)  $525,000. 
B)  $504,167. 
C)  $481,250. 
D)  $458,333. 
E)  $418,250. 
A)  $525,000. 
B)  $504,167. 
C)  $481,250. 
D)  $458,333. 
E)  $418,250.

Question 16

If the amount extracted from a coal mine were different every year for four years, you would:

Accepted Answer

A)  recompute the depletion expense rate per unit each year. 
B)  use the same depletion expense rate per unit each year. 
C)  debit Depletion Expense for the same amount each year. 
D)  credit Accumulated Depletion-coal mine for the same amount each year. 
A)  recompute the depletion expense rate per unit each year. 
B)  use the same depletion expense rate per unit each year. 
C)  debit Depletion Expense for the same amount each year. 
D)  credit Accumulated Depletion-coal mine for the same amount each year.

Question 17

How is goodwill calculated?

Accepted Answer

Goodwill is the excess of the

Question 18

To which account are repairs and maintenance after start-up recorded?

Accepted Answer

Repairs an

Question 19

Machinery that cost $57,000 and had accumulated depreciation of $46,000 was sold for $2,500. What is the journal entry to record this disposal?

Accepted Answer

The answer of Machinery that cost $57,000 and had accumulated...

Question 20

Coal, oil, and timber are:

Accepted Answer

A)  amortized. 
B)  depleted. 
C)  depreciated. 
D)  expensed. 
E)  written off. 
A)  amortized. 
B)  depleted. 
C)  depreciated. 
D)  expensed. 
E)  written off.

Long-term marketable securities, such as five-year held-to-maturity securities, would be listed last in the long-term assets portion of a company's balance sheet.

Plant assets can be called fixed assets or physical assets.

The cost of furniture and fixtures, such as desks, chairs and other items, includes its basic cost plus all other costs to ready the asset for its intended use.

For which kind of marketable securities are any unrealized gains and losses shown on the income statement?

A company expenses the cost of a betterment by debiting Repair and Maintenance Expense, rather than capitalizing it (debiting an asset). What effect would this error have on the income statement?

When an asset is disposed, the current period's depreciation expense account must be updated to the time of the disposal.

What do you obtain when you take the cost divided by the total amount of the natural resource?

Information needed to compute a depletion charge per unit includes the:

On September 9, Ariana Company paid $15,300 to purchase a front end loader for its Tractor #2. What is the journal entry to record this?

Intangibles, such as patents and copyrights, are listed after property, plant, and equipment and after natural resources on a company's long-term assets portion of the balance sheet.

Book value is depreciable cost minus accumulated depreciation.

A van that cost $23,700 and had accumulated depreciation of $21,000 was sold for $1,250. Record the journal entry required.

Depreciation is based upon cost, useful life, and salvage value.

Which of the following would NOT be considered as part of the cost of the land?

If the amount extracted from a coal mine were different every year for four years, you would:

How is goodwill calculated?

To which account are repairs and maintenance after start-up recorded?

Machinery that cost $57,000 and had accumulated depreciation of $46,000 was sold for $2,500. What is the journal entry to record this disposal?

Coal, oil, and timber are:

Business, Accounting, and You

Analyzing and Recording Business Transactions

Adjusting and Closing Entries

Ethics, Internal Control, and Cash

Accounting for a Merchandising Business

Inventory

Sales and Receivables

Current Liabilities and Long-Term Debt

Corporations: Share Capital and Retained Earnings

The Cash Flow Statement

Financial Statement Analysis

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Exam 8: Long-Term Assets

Long-term marketable securities, such as five-year held-to-maturity securities, would be listed last in the long-term assets portion of a company's balance sheet.

Plant assets can be called fixed assets or physical assets.

The cost of furniture and fixtures, such as desks, chairs and other items, includes its basic cost plus all other costs to ready the asset for its intended use.

For which kind of marketable securities are any unrealized gains and losses shown on the income statement?

A company expenses the cost of a betterment by debiting Repair and Maintenance Expense, rather than capitalizing it (debiting an asset). What effect would this error have on the income statement?

When an asset is disposed, the current period's depreciation expense account must be updated to the time of the disposal.

What do you obtain when you take the cost divided by the total amount of the natural resource?

Information needed to compute a depletion charge per unit includes the:

On September 9, Ariana Company paid $15,300 to purchase a front end loader for its Tractor #2. What is the journal entry to record this?

Intangibles, such as patents and copyrights, are listed after property, plant, and equipment and after natural resources on a company's long-term assets portion of the balance sheet.

Book value is depreciable cost minus accumulated depreciation.

A van that cost $23,700 and had accumulated depreciation of $21,000 was sold for $1,250. Record the journal entry required.

Depreciation is based upon cost, useful life, and salvage value.

Which of the following would NOT be considered as part of the cost of the land?

If the amount extracted from a coal mine were different every year for four years, you would:

How is goodwill calculated?

To which account are repairs and maintenance after start-up recorded?

Machinery that cost $57,000 and had accumulated depreciation of $46,000 was sold for $2,500. What is the journal entry to record this disposal?

Coal, oil, and timber are:

Business, Accounting, and You

Analyzing and Recording Business Transactions

Adjusting and Closing Entries

Ethics, Internal Control, and Cash

Accounting for a Merchandising Business

Inventory

Sales and Receivables

Current Liabilities and Long-Term Debt

Corporations: Share Capital and Retained Earnings

The Cash Flow Statement

Financial Statement Analysis

Filters