Question 1

If an extraordinary repair is incorrectly expensed in the current period,the net income for that period will be:

Accepted Answer

A) overstated and net income in future periods will not be affected. 
B) understated and net income in future periods will not be affected. 
C) overstated and net income in future periods will be understated. 
D) understated and net income in future periods will be overstated. 
A) overstated and net income in future periods will not be affected. 
B) understated and net income in future periods will not be affected. 
C) overstated and net income in future periods will be understated. 
D) understated and net income in future periods will be overstated.

Question 2

The return on assets and the fixed asset turnover are usually computed monthly.

Accepted Answer

A) True 
 B)False

Question 3

Metropolitan Masonry made a basket purchase of three items.Item X was appraised at $35,000;item Y was appraised at $55,000 and item Z was appraised at $60,000.The purchase price was $125,000.The amount at which item Y should be recorded is:

Accepted Answer

A) ($55,000/$125,000)× $150,000. 
B) ($55,000/$150,000)× $125,000. 
C) ($55,000/$95,000)× $150,000. 
D) ($55,000/$95,000)× $125,000. 
A) ($55,000/$125,000)× $150,000. 
B) ($55,000/$150,000)× $125,000. 
C) ($55,000/$95,000)× $150,000. 
D) ($55,000/$95,000)× $125,000.

Question 4

The depreciation method in which the depreciable cost of an asset is apportioned equally over its estimated life in terms of month or years is called the:

Accepted Answer

A) double-declining-balance method. 
B) units-of-production method. 
C) amortization method. 
D) straight-line method. 
A) double-declining-balance method. 
B) units-of-production method. 
C) amortization method. 
D) straight-line method.

Question 5

According to GAAP,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. 
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.

Question 6

In general,companies don't report R&D costs as assets on their balance sheets.

Accepted Answer

A) True 
 B)False

Question 7

A manufacturer may identify its product with a unique symbol and prevent other manufacturers from using the same symbol by obtaining a:

Accepted Answer

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

Question 8

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

Accepted Answer

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

Question 9

A truck costing $56,000 has accumulated depreciation of $50,000.The truck is sold for $8,500.The journal entry to record this transaction is to:

Accepted Answer

A) debit Cash for $8,500,debit Accumulated Depreciation - Truck for $50,000,credit Truck for $56,000,and credit Gain on Disposal for $2,500. 
B) debit Accumulated Depreciation - Truck for $50,000,and credit Truck for $50,000. 
C) debit Cash for $8,500,debit Truck for $56,000,credit Accumulated Depreciation - Truck for $50,000 and credit Gain on Disposal for $14,500. 
D) debit Cash for $2,500,debit Truck for $56,000,credit Accumulated Depreciation - Truck for $50,000,and credit Gain on Disposal for $8,500. 
A) debit Cash for $8,500,debit Accumulated Depreciation - Truck for $50,000,credit Truck for $56,000,and credit Gain on Disposal for $2,500. 
B) debit Accumulated Depreciation - Truck for $50,000,and credit Truck for $50,000. 
C) debit Cash for $8,500,debit Truck for $56,000,credit Accumulated Depreciation - Truck for $50,000 and credit Gain on Disposal for $14,500. 
D) debit Cash for $2,500,debit Truck for $56,000,credit Accumulated Depreciation - Truck for $50,000,and credit Gain on Disposal for $8,500.

Question 10

Bob's Bakery 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 Bob's paid for the four assets was $145,000.To the nearest dollar,what final price will be recorded for asset D?

Accepted Answer

A) $30,807 
B) $33,683 
C) $36,969 
D) $43,541 
A) $30,807 
B) $33,683 
C) $36,969 
D) $43,541

Question 11

Upgrading the RAM on a computer would be an example of a(n):

Accepted Answer

A) betterment. 
B) extraordinary repair. 
C) ordinary repair. 
D) capital expense. 
A) betterment. 
B) extraordinary repair. 
C) ordinary repair. 
D) capital expense.

Question 12

In computing depletion expense,salvage value is not part of the computation.

Accepted Answer

A) True 
 B)False

Question 13

Cost divided by the total amount of the natural resource to be removed yields:

Accepted Answer

A) depletion expense for the period. 
B) depletion rate per unit for the period. 
C) accumulated rate for the period. 
D) depreciation rate per unit for the period. 
A) depletion expense for the period. 
B) depletion rate per unit for the period. 
C) accumulated rate for the period. 
D) depreciation rate per unit for the period.

Question 14

The following is selected data for Northwest Industries:
 
The return on assets (rounded to the nearest tenth of a percent)for 2012 was:

Accepted Answer

A) 20.3. 
B) 19.2. 
C) 23.9. 
D) 25.3. 
A) 20.3. 
B) 19.2. 
C) 23.9. 
D) 25.3.

Question 15

The following is selected data for Inland Industries:
 
The return on assets (rounded to the nearest tenth of a percent)for 2012 was:

Accepted Answer

A) 14.2. 
B) 17.8. 
C) 14.3. 
D) 17.7. 
A) 14.2. 
B) 17.8. 
C) 14.3. 
D) 17.7.

Question 16

A method best suited for depreciating items,such as copy machines and vehicles,would be the:

Accepted Answer

A) expense method. 
B) units-of-production method. 
C) double-declining balance method. 
D) straight-line method. 
A) expense method. 
B) units-of-production method. 
C) double-declining balance method. 
D) straight-line method.

Question 17

The matching principle dictates whether the cost of a repair should be expensed or depreciated.

Accepted Answer

A) True 
 B)False

Question 18

After an asset is fully depreciated,the asset:

Accepted Answer

A) must be removed from the Balance Sheet. 
B) remains on the Balance Sheet at a value of $0. 
C) remains on the Balance Sheet at (cost - Accumulated Depreciation). 
D) remains on the Balance Sheet at cost. 
A) must be removed from the Balance Sheet. 
B) remains on the Balance Sheet at a value of $0. 
C) remains on the Balance Sheet at (cost - Accumulated Depreciation). 
D) remains on the Balance Sheet at cost.

Question 19

Double-declining balance is an accelerated method of calculating depreciation where salvage value is NOT part of the initial computation.

Accepted Answer

A) True 
 B)False

Question 20

Lubricating a machine on a regular basis would be considered a(n):

Accepted Answer

A) betterment. 
B) capital expenditure. 
C) ordinary repair. 
D) capital expense. 
A) betterment. 
B) capital expenditure. 
C) ordinary repair. 
D) capital expense.

If an extraordinary repair is incorrectly expensed in the current period,the net income for that period will be:

The return on assets and the fixed asset turnover are usually computed monthly.

Metropolitan Masonry made a basket purchase of three items.Item X was appraised at $35,000;item Y was appraised at $55,000 and item Z was appraised at $60,000.The purchase price was $125,000.The amount at which item Y should be recorded is:

The depreciation method in which the depreciable cost of an asset is apportioned equally over its estimated life in terms of month or years is called the:

According to GAAP,goodwill is:

In general,companies don't report R&D costs as assets on their balance sheets.

A manufacturer may identify its product with a unique symbol and prevent other manufacturers from using the same symbol by obtaining a:

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

A truck costing $56,000 has accumulated depreciation of $50,000.The truck is sold for $8,500.The journal entry to record this transaction is to:

Bob's Bakery 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 Bob's paid for the four assets was $145,000.To the nearest dollar,what final price will be recorded for asset D?

Upgrading the RAM on a computer would be an example of a(n):

In computing depletion expense,salvage value is not part of the computation.

Cost divided by the total amount of the natural resource to be removed yields:

The following is selected data for Northwest Industries: The return on assets (rounded to the nearest tenth of a percent)for 2012 was:

The following is selected data for Inland Industries: The return on assets (rounded to the nearest tenth of a percent)for 2012 was:

A method best suited for depreciating items,such as copy machines and vehicles,would be the:

The matching principle dictates whether the cost of a repair should be expensed or depreciated.

After an asset is fully depreciated,the asset:

Double-declining balance is an accelerated method of calculating depreciation where salvage value is NOT part of the initial computation.

Lubricating a machine on a regular basis would be considered a(n):

Business, Accounting, and You

Analyzing and Recording Business Transactions

Adjusting and Closing Entries

Accounting for a Merchandising Business

Inventory

The Challenges of Accounting: Standards, internal Control, audits, fraud, and Ethics

Cash and Receivables

Current Liabilities and Long-Term Debt

Corporations: Paid-In Capital and Retained Earnings

The Statement of Cash Flows

Financial Statement Analysis

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Exam 8: Long-Term and Other Assets

If an extraordinary repair is incorrectly expensed in the current period,the net income for that period will be:

The return on assets and the fixed asset turnover are usually computed monthly.

Metropolitan Masonry made a basket purchase of three items.Item X was appraised at $35,000;item Y was appraised at $55,000 and item Z was appraised at $60,000.The purchase price was $125,000.The amount at which item Y should be recorded is:

The depreciation method in which the depreciable cost of an asset is apportioned equally over its estimated life in terms of month or years is called the:

According to GAAP,goodwill is:

In general,companies don't report R&D costs as assets on their balance sheets.

A manufacturer may identify its product with a unique symbol and prevent other manufacturers from using the same symbol by obtaining a:

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

A truck costing $56,000 has accumulated depreciation of $50,000.The truck is sold for $8,500.The journal entry to record this transaction is to:

Bob's Bakery 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 Bob's paid for the four assets was $145,000.To the nearest dollar,what final price will be recorded for asset D?

Upgrading the RAM on a computer would be an example of a(n):

In computing depletion expense,salvage value is not part of the computation.

Cost divided by the total amount of the natural resource to be removed yields:

The following is selected data for Northwest Industries: The return on assets (rounded to the nearest tenth of a percent)for 2012 was:

The following is selected data for Inland Industries: The return on assets (rounded to the nearest tenth of a percent)for 2012 was:

A method best suited for depreciating items,such as copy machines and vehicles,would be the:

The matching principle dictates whether the cost of a repair should be expensed or depreciated.

After an asset is fully depreciated,the asset:

Double-declining balance is an accelerated method of calculating depreciation where salvage value is NOT part of the initial computation.

Lubricating a machine on a regular basis would be considered a(n):

Business, Accounting, and You

Analyzing and Recording Business Transactions

Adjusting and Closing Entries

Accounting for a Merchandising Business

Inventory

The Challenges of Accounting: Standards, internal Control, audits, fraud, and Ethics

Cash and Receivables

Current Liabilities and Long-Term Debt

Corporations: Paid-In Capital and Retained Earnings

The Statement of Cash Flows

Financial Statement Analysis

Filters