Question 1

Patents, goodwill, and trademarks 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.

Question 2

Which of the following are generally rendered obsolete because of technological advancements?

Accepted Answer

A)  Patent 
B)  Copyright 
C)  Franchise 
D)  Goodwill 
E)  Licenses. 
A)  Patent 
B)  Copyright 
C)  Franchise 
D)  Goodwill 
E)  Licenses.

Question 3

What type of marketable securities are reported at market value on the balance sheet date?

Accepted Answer

Available-

Question 4

A company replaced an engine on a vehicle and debited the amount to repairs expense, rather than debiting the "vehicle" account. Which of the following would occur because of this error?

Accepted Answer

A)  Repairs Expense would be understated. 
B)  Net Income would be overstated. 
C)  The asset "vehicle" would be overstated. 
D)  The asset "vehicle" would be understated. 
E)  Shareholders' Equity would be overstated. 
A)  Repairs Expense would be understated. 
B)  Net Income would be overstated. 
C)  The asset "vehicle" would be overstated. 
D)  The asset "vehicle" would be understated. 
E)  Shareholders' Equity would be overstated.

Question 5

Costs of testing machinery or equipment before it is used would be included in the price of the machinery or the equipment.

Accepted Answer

A) True 
 B)False

Question 6

What is the formula to calculate straight-line depreciation?

Accepted Answer

(Cost - re

Question 7

Jillian Company purchased a set of fixtures on January 1, 2012. The cost was $12,000 and the set had a
residual value of $2,000. The fixtures were given a useful life of 8 years. After the end of three years, it was determined that the fixtures would be obsolete in 2 more years. Assume that the estimated residual value is still $2,000. What will be the depreciation under the straight-line method to the nearest dollar for the fourth year? What is the journal entry in the fourth year to record depreciation?

Accepted Answer

$3,125
Debit Depreci

Question 8

Which of the following would NOT be considered as part of the cost of a constructed building?

Accepted Answer

A)  Building permit fees 
B)  Contractor charges 
C)  Survey and legal fees 
D)  Architectural fees 
E)  Labour costs for construction of building 
A)  Building permit fees 
B)  Contractor charges 
C)  Survey and legal fees 
D)  Architectural fees 
E)  Labour costs for construction of building

Question 9

Joshua Company made a basket purchase involving four assets. Their market values were A: $45,000;
B: $37,500; C: $41,000; and D: $53,000. The price Joshua paid for the four assets was $160,000. What percentage of the $160,000 price would be allocated to asset C to the nearest one-tenth of a percent? What is the dollar amount recorded to the asset C?

Accepted Answer

$41,000 / $(45,000 +

Question 10

Buildings, vehicles, and desks 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.

Question 11

The method often used for income tax purposes is the:

Accepted Answer

A)  expense method. 
B)  units-of-production method. 
C)  capital cost allowance method. 
D)  straight-line method. 
E)  capitalization method. 
A)  expense method. 
B)  units-of-production method. 
C)  capital cost allowance method. 
D)  straight-line method. 
E)  capitalization method.

Question 12

What are the three common ways that an asset can be disposed of?

Accepted Answer

The asset

Question 13

Assume fair value of a vehicle is $14,000, value in use is $14,500, and carrying value $15,500. Is the asset impaired under IFRS? If so, what is the impairment loss?

Accepted Answer

Yes, the asset is impaired bec

Question 14

Which of the following would NOT be considered an intangible asset?

Accepted Answer

A)  Goodwill 
B)  Franchise 
C)  Land 
D)  Copyright 
E)  Patent 
A)  Goodwill 
B)  Franchise 
C)  Land 
D)  Copyright 
E)  Patent

Question 15

Goodwill is:

Accepted Answer

A)  amortized every year. 
B)  recorded as a gain only when the goodwill is gaining value. 
C)  recorded as a loss only when the goodwill is losing value. 
D)  amortized like other intangible assets. 
E)  recorded as a loss every year instead of recording amortization. 
A)  amortized every year. 
B)  recorded as a gain only when the goodwill is gaining value. 
C)  recorded as a loss only when the goodwill is losing value. 
D)  amortized like other intangible assets. 
E)  recorded as a loss every year instead of recording amortization.

Question 16

Expenditures incurred, such as changing the oil and filter on a delivery truck, would be considered ordinary repairs.

Accepted Answer

A) True 
 B)False

Question 17

Instead of using an accumulated amortization account similar to accumulated depreciation, the expense of amortization is directly credited to the intangible asset itself.

Accepted Answer

A) True 
 B)False

Question 18

The process of allocating the cost of natural resources is called depletion.

Accepted Answer

A) True 
 B)False

Question 19

The first step in recording a disposal transaction is to figure the gain or loss on the disposal.

Accepted Answer

A) True 
 B)False

Question 20

Carine Corporation purchased Matilda Industries on January 1, 2012. At the time of the purchase, the market value of Matilda's assets is $1,120,000 and its liabilities total $320,000. Carine pays $900,000 for Matilda. Calculate the Goodwill and record the journal entry to record the purchase.

Accepted Answer

Goodwill = $900,000 - ($1,120,

Patents, goodwill, and trademarks are:

Which of the following are generally rendered obsolete because of technological advancements?

What type of marketable securities are reported at market value on the balance sheet date?

A company replaced an engine on a vehicle and debited the amount to repairs expense, rather than debiting the "vehicle" account. Which of the following would occur because of this error?

Costs of testing machinery or equipment before it is used would be included in the price of the machinery or the equipment.

What is the formula to calculate straight-line depreciation?

Which of the following would NOT be considered as part of the cost of a constructed building?

Buildings, vehicles, and desks are:

The method often used for income tax purposes is the:

What are the three common ways that an asset can be disposed of?

Assume fair value of a vehicle is $14,000, value in use is $14,500, and carrying value $15,500. Is the asset impaired under IFRS? If so, what is the impairment loss?

Which of the following would NOT be considered an intangible asset?

Goodwill is:

Expenditures incurred, such as changing the oil and filter on a delivery truck, would be considered ordinary repairs.

Instead of using an accumulated amortization account similar to accumulated depreciation, the expense of amortization is directly credited to the intangible asset itself.

The process of allocating the cost of natural resources is called depletion.

The first step in recording a disposal transaction is to figure the gain or loss on the disposal.

Carine Corporation purchased Matilda Industries on January 1, 2012. At the time of the purchase, the market value of Matilda's assets is $1,120,000 and its liabilities total $320,000. Carine pays $900,000 for Matilda. Calculate the Goodwill and record the journal entry to record the purchase.

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

Patents, goodwill, and trademarks are:

Which of the following are generally rendered obsolete because of technological advancements?

What type of marketable securities are reported at market value on the balance sheet date?

A company replaced an engine on a vehicle and debited the amount to repairs expense, rather than debiting the "vehicle" account. Which of the following would occur because of this error?

Costs of testing machinery or equipment before it is used would be included in the price of the machinery or the equipment.

What is the formula to calculate straight-line depreciation?

Which of the following would NOT be considered as part of the cost of a constructed building?

Buildings, vehicles, and desks are:

The method often used for income tax purposes is the:

What are the three common ways that an asset can be disposed of?

Assume fair value of a vehicle is $14,000, value in use is $14,500, and carrying value $15,500. Is the asset impaired under IFRS? If so, what is the impairment loss?

Which of the following would NOT be considered an intangible asset?

Goodwill is:

Expenditures incurred, such as changing the oil and filter on a delivery truck, would be considered ordinary repairs.

Instead of using an accumulated amortization account similar to accumulated depreciation, the expense of amortization is directly credited to the intangible asset itself.

The process of allocating the cost of natural resources is called depletion.

The first step in recording a disposal transaction is to figure the gain or loss on the disposal.

Carine Corporation purchased Matilda Industries on January 1, 2012. At the time of the purchase, the market value of Matilda's assets is $1,120,000 and its liabilities total $320,000. Carine pays $900,000 for Matilda. Calculate the Goodwill and record the journal entry to record the purchase.

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