Question 1

Once an asset is fully depreciated,it may not be used any more,but must be sold or disposed of.

Accepted Answer

A) True 
 B)False

Question 2

Asset impairments occur when the asset's value has a significant decline,outside of normal depreciation.

Accepted Answer

A) True 
 B)False

Question 3

On September 1,2012,Algernon Company sold a truck for $15,000 cash.The truck was originally purchased for $40,000,had an estimated salvage value of $4,000 and an estimated life of 6 years.Algernon had recorded depreciation of $30,000 through the end of 2011 using Straight-Line.First,Algernon had to update the depreciation prior to sale.Then Algernon recorded the sale transaction.What was the effect of that transaction on the net income of the company?

Accepted Answer

A)  No gain or loss 
B)  Gain of $9,000 
C)  Gain of $15,000 
D)  Loss of $9,000 
A)  No gain or loss 
B)  Gain of $9,000 
C)  Gain of $15,000 
D)  Loss of $9,000

Question 4

Avery Sales purchased telecom equipment for $5,000 on November 1,2013.It has estimated residual value of $200,and an estimated life of 8 years.If Avery uses straight-line depreciation,how much expense will be recorded in 2013?

Accepted Answer

A)  $312 
B)  $120 
C)  $100 
D)  $225 
A)  $312 
B)  $120 
C)  $100 
D)  $225

Question 5

A plant asset is sold for $1,000.The original cost was $9,000,salvage value was estimated at $200,and useful life was estimated at 12 years.At time of sale,accumulated depreciation was $8,500.The sale resulted in a gain of $500.

Accepted Answer

A) True 
 B)False

Question 6

Azimuth Company purchases a small business for $500,000.The market value of the business's assets are $850,000,and the market value of the liabilities are $400,000.Please provide the journal entry to record the acquisition of the business along with goodwill,if any.
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Accepted Answer

This question is no

Question 7

The cost of fencing around a building is included in the cost of the building.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following assets is NOT an intangible asset?

Accepted Answer

A)  Patent 
B)  Goodwill 
C)  Building 
D)  Trademark 
A)  Patent 
B)  Goodwill 
C)  Building 
D)  Trademark

Question 9

Which of the following accounting methods is usually used to compute amortization expense?

Accepted Answer

A)  Declining-balance 
B)  Units-of-production 
C)  Straight-line 
D)  First-In, First-Out 
A)  Declining-balance 
B)  Units-of-production 
C)  Straight-line 
D)  First-In, First-Out

Question 10

Acme Investments plans to develop a shopping center.In the first quarter,they spent the following amounts: $$\begin{array} { l r } 
\text { Purchase land } & \$ 100,000 \
\text { Surveys and legal fees } & 1,200 \
\text { Land clearing } & 5,000 \
\text { Install fences around the property } & 4,600 \
\text { Install lighting and signage } & 2,600
\end{array}$$ 
-0 What amount should be recorded as the land improvements cost?

Accepted Answer

A)  $7,200 
B)  $101,200 
C)  $46,200 
D)  $106,200 
A)  $7,200 
B)  $101,200 
C)  $46,200 
D)  $106,200

Question 11

Normal expenditures for repairs and maintenance should be capitalized.

Accepted Answer

A) True 
 B)False

Question 12

Azimuth Company purchases a small business for $450,000.The market value of the business's assets are $850,000,and the market value of the liabilities are $400,000.How much goodwill should Azimuth record?

Accepted Answer

A)  None 
B)  $500,000 
C)  $450,000 
D)  $50,000 
A)  None 
B)  $500,000 
C)  $450,000 
D)  $50,000

Question 13

A patent is an exclusive right to reproduce and sell a book,musical composition,film,other work of art,or computer program.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following intangible assets bars other manufacturers from using the same name for a product?

Accepted Answer

A)  Trademark 
B)  Patent 
C)  Copyright 
D)  Franchise 
A)  Trademark 
B)  Patent 
C)  Copyright 
D)  Franchise

Question 15

Which of the following is the amount capitalized as goodwill?

Accepted Answer

A)  The excess of the cost of an acquired company over the sum of the market value of its net assets 
B)  The excess of the cost of an acquired company over the sum of the book value of its assets 
C)  The excess of the cost of an acquired company over the sum of the book value of its net assets 
D)  The excess of the cost of an acquired company over the sum of the market value of its assets 
A)  The excess of the cost of an acquired company over the sum of the market value of its net assets 
B)  The excess of the cost of an acquired company over the sum of the book value of its assets 
C)  The excess of the cost of an acquired company over the sum of the book value of its net assets 
D)  The excess of the cost of an acquired company over the sum of the market value of its assets

Question 16

On January 1,2013,Zane Manufacturing Company purchased a machine for $40,000.The company expects to use the machine a total of 24,000 hours over the next 6 years.The estimated sales price of the machine at the end of 6 years is $4,000.The company used the machine 8,000 hours in 2013 and 12,000 in 2014.
-What is the book value of the machine at the end of 2014 if the company uses straight-line depreciation?

Accepted Answer

A)  $10,000 
B)  $28,000 
C)  $17,778 
D)  $20,000 
A)  $10,000 
B)  $28,000 
C)  $17,778 
D)  $20,000

Question 17

Corey Sales sold its old office furniture for $400.The original cost was $8,000,and at the time of sale,it had accumulated depreciation of $7,000.What was the effect of the transaction?

Accepted Answer

A)  Gain of $600 
B)  Gain of $400 
C)  Loss of $1,600 
D)  Loss of $600 
A)  Gain of $600 
B)  Gain of $400 
C)  Loss of $1,600 
D)  Loss of $600

Question 18

Which of the following items should be depleted?

Accepted Answer

A)  Intangible property 
B)  Land 
C)  Natural resources 
D)  Tangible property, plant, and equipment, other than land 
A)  Intangible property 
B)  Land 
C)  Natural resources 
D)  Tangible property, plant, and equipment, other than land

Question 19

Job Sales sold a truck for $2,000 cash.It was originally purchased for $36,000,and had accumulated depreciation of $30,000 at the time of sale.Please provide the journal entry for the sale of the truck.
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\end{array}$$

Accepted Answer

This question is no

Question 20

A company's accountant capitalizes a payment that should be recorded as an expense.Which of the following is TRUE?

Accepted Answer

A)  Net income is overstated. 
B)  Revenues are understated 
C)  Assets are understated. 
D)  Liabilities are overstated. 
A)  Net income is overstated. 
B)  Revenues are understated 
C)  Assets are understated. 
D)  Liabilities are overstated.

Once an asset is fully depreciated,it may not be used any more,but must be sold or disposed of.

Asset impairments occur when the asset's value has a significant decline,outside of normal depreciation.

Avery Sales purchased telecom equipment for $5,000 on November 1,2013.It has estimated residual value of $200,and an estimated life of 8 years.If Avery uses straight-line depreciation,how much expense will be recorded in 2013?

A plant asset is sold for $1,000.The original cost was $9,000,salvage value was estimated at $200,and useful life was estimated at 12 years.At time of sale,accumulated depreciation was $8,500.The sale resulted in a gain of $500.

Azimuth Company purchases a small business for $500,000.The market value of the business's assets are $850,000,and the market value of the liabilities are $400,000.Please provide the journal entry to record the acquisition of the business along with goodwill,if any.

The cost of fencing around a building is included in the cost of the building.

Which of the following assets is NOT an intangible asset?

Which of the following accounting methods is usually used to compute amortization expense?

Normal expenditures for repairs and maintenance should be capitalized.

Azimuth Company purchases a small business for $450,000.The market value of the business's assets are $850,000,and the market value of the liabilities are $400,000.How much goodwill should Azimuth record?

A patent is an exclusive right to reproduce and sell a book,musical composition,film,other work of art,or computer program.

Which of the following intangible assets bars other manufacturers from using the same name for a product?

Which of the following is the amount capitalized as goodwill?

Corey Sales sold its old office furniture for $400.The original cost was $8,000,and at the time of sale,it had accumulated depreciation of $7,000.What was the effect of the transaction?

Which of the following items should be depleted?

Job Sales sold a truck for $2,000 cash.It was originally purchased for $36,000,and had accumulated depreciation of $30,000 at the time of sale.Please provide the journal entry for the sale of the truck.

A company's accountant capitalizes a payment that should be recorded as an expense.Which of the following is TRUE?

Accounting and the Business Environment

Recording Business Transactions

The Adjusting Process

Completing the Accounting Cycle

Merchandising Operations

Merchandising Inventory

Internal Control and Cash

Receivables

Current Liabilities and Payroll

Long-Term Liabilities, bonds Payable, and Classification of Liabilities on the Balance Sheet

Filters

Exam 9: Plant Assets and Intangibles

Once an asset is fully depreciated,it may not be used any more,but must be sold or disposed of.

Asset impairments occur when the asset's value has a significant decline,outside of normal depreciation.

Avery Sales purchased telecom equipment for $5,000 on November 1,2013.It has estimated residual value of $200,and an estimated life of 8 years.If Avery uses straight-line depreciation,how much expense will be recorded in 2013?

A plant asset is sold for $1,000.The original cost was $9,000,salvage value was estimated at $200,and useful life was estimated at 12 years.At time of sale,accumulated depreciation was $8,500.The sale resulted in a gain of $500.

Azimuth Company purchases a small business for $500,000.The market value of the business's assets are $850,000,and the market value of the liabilities are $400,000.Please provide the journal entry to record the acquisition of the business along with goodwill,if any.

The cost of fencing around a building is included in the cost of the building.

Which of the following assets is NOT an intangible asset?

Which of the following accounting methods is usually used to compute amortization expense?

Normal expenditures for repairs and maintenance should be capitalized.

Azimuth Company purchases a small business for $450,000.The market value of the business's assets are $850,000,and the market value of the liabilities are $400,000.How much goodwill should Azimuth record?

A patent is an exclusive right to reproduce and sell a book,musical composition,film,other work of art,or computer program.

Which of the following intangible assets bars other manufacturers from using the same name for a product?

Which of the following is the amount capitalized as goodwill?

Corey Sales sold its old office furniture for $400.The original cost was $8,000,and at the time of sale,it had accumulated depreciation of $7,000.What was the effect of the transaction?

Which of the following items should be depleted?

Job Sales sold a truck for $2,000 cash.It was originally purchased for $36,000,and had accumulated depreciation of $30,000 at the time of sale.Please provide the journal entry for the sale of the truck.

A company's accountant capitalizes a payment that should be recorded as an expense.Which of the following is TRUE?

Accounting and the Business Environment

Recording Business Transactions

The Adjusting Process

Completing the Accounting Cycle

Merchandising Operations

Merchandising Inventory

Internal Control and Cash

Receivables

Current Liabilities and Payroll

Long-Term Liabilities, bonds Payable, and Classification of Liabilities on the Balance Sheet

Filters