Question 1

The double-declining-balance method ignores the residual value while calculating the amount of depreciation.

Accepted Answer

A) True 
 B)False

Question 2

Nobells Inc. has acquired a property that included both land and a building for $500,000. The company hired an appraiser who has determined that the market value of the land is $300,000 and that of the building is $400,000. At what amount should the company record the cost of land?

Accepted Answer

A) $147,368 
B) $52,632 
C) $250,000 
D) $214,286 
A) $147,368 
B) $52,632 
C) $250,000 
D) $214,286

Question 3

Which of the following is included in the cost of a plant asset?

Accepted Answer

A) amounts paid to make the asset ready for its intended use 
B) regular repair and maintenance cost 
C) replacement of damaged parts of the asset 
D) wages of workers who work with the asset 
A) amounts paid to make the asset ready for its intended use 
B) regular repair and maintenance cost 
C) replacement of damaged parts of the asset 
D) wages of workers who work with the asset

Question 4

Whenever a plant asset is sold or otherwise disposed of, the first step is to bring the depreciation up to date.

Accepted Answer

A) True 
 B)False

Question 5

When an asset is fully depreciated, no further depreciation expense is recorded.

Accepted Answer

A) True 
 B)False

Question 6

A company purchased a used machine for $10,000. The machine required installation costs of $1,000 and insurance while in transit of $500. At which of the following amounts would the machine be recorded?

Accepted Answer

A) $10,000 
B) $11,000 
C) $10,500 
D) $11,500 
A) $10,000 
B) $11,000 
C) $10,500 
D) $11,500

Question 7

Which of the following is an expense resulting from decline in the utility of a natural resource?

Accepted Answer

A) depletion 
B) amortization 
C) depreciation 
D) obsolescence 
A) depletion 
B) amortization 
C) depreciation 
D) obsolescence

Question 8

A truck costs $100,000 when new, and it has an accumulated depreciation of $70,000. Suppose the company exchanges the truck for a new truck. The new truck has a market value of $120,000 and company pays cash of $100,000. Assume the exchange has commercial substance. Journalize the transaction.

Accepted Answer

The answer of A truck costs $100,000 when new, and...

Question 9

A trademark should not be amortized over its useful life.

Accepted Answer

A) True 
 B)False

Question 10

If a company uses the contra account, Accumulated Amortization, this account will typically be shown on the balance sheet.

Accepted Answer

A) True 
 B)False

Question 11

Discarding of plant assets involves disposing of the asset for no cash.

Accepted Answer

A) True 
 B)False

The double-declining-balance method ignores the residual value while calculating the amount of depreciation.

Nobells Inc. has acquired a property that included both land and a building for $500,000. The company hired an appraiser who has determined that the market value of the land is $300,000 and that of the building is $400,000. At what amount should the company record the cost of land?

Which of the following is included in the cost of a plant asset?

Whenever a plant asset is sold or otherwise disposed of, the first step is to bring the depreciation up to date.

When an asset is fully depreciated, no further depreciation expense is recorded.

A company purchased a used machine for $10,000. The machine required installation costs of $1,000 and insurance while in transit of $500. At which of the following amounts would the machine be recorded?

Which of the following is an expense resulting from decline in the utility of a natural resource?

A truck costs $100,000 when new, and it has an accumulated depreciation of $70,000. Suppose the company exchanges the truck for a new truck. The new truck has a market value of $120,000 and company pays cash of $100,000. Assume the exchange has commercial substance. Journalize the transaction.

A trademark should not be amortized over its useful life.

If a company uses the contra account, Accumulated Amortization, this account will typically be shown on the balance sheet.

Discarding of plant assets involves disposing of the asset for no cash.

Accounting and the Business Environment

Recording Business Transactions

The Adjusting Process

Completing the Accounting Cycle

Merchandising Operations

Merchandise Inventory

Accounting Information Systems

Internal Control and Cash

Receivables

Current Liabilities and Payroll

Partnerships

Corporations

Long-Term Liabilities

Investments

The Statement of Cash Flows

Financial Statement Analysis

Introduction to Managerial Accounting

Job Order Costing

Process Costing

Cost-Volume-Profit Analysis

Master Budgets

Flexible Budgets and Standard Cost Systems

Cost Allocation and Responsibility Accounting

Short-Term Business Decisions

Capital Investment Decisions

Filters

Exam 10: Plant Assets, Natural Resources, and Intangibles

The double-declining-balance method ignores the residual value while calculating the amount of depreciation.

Nobells Inc. has acquired a property that included both land and a building for $500,000. The company hired an appraiser who has determined that the market value of the land is $300,000 and that of the building is $400,000. At what amount should the company record the cost of land?

Which of the following is included in the cost of a plant asset?

Whenever a plant asset is sold or otherwise disposed of, the first step is to bring the depreciation up to date.

When an asset is fully depreciated, no further depreciation expense is recorded.

A company purchased a used machine for $10,000. The machine required installation costs of $1,000 and insurance while in transit of $500. At which of the following amounts would the machine be recorded?

Which of the following is an expense resulting from decline in the utility of a natural resource?

A truck costs $100,000 when new, and it has an accumulated depreciation of $70,000. Suppose the company exchanges the truck for a new truck. The new truck has a market value of $120,000 and company pays cash of $100,000. Assume the exchange has commercial substance. Journalize the transaction.

A trademark should not be amortized over its useful life.

If a company uses the contra account, Accumulated Amortization, this account will typically be shown on the balance sheet.

Discarding of plant assets involves disposing of the asset for no cash.

Accounting and the Business Environment

Recording Business Transactions

The Adjusting Process

Completing the Accounting Cycle

Merchandising Operations

Merchandise Inventory

Accounting Information Systems

Internal Control and Cash

Receivables

Current Liabilities and Payroll

Partnerships

Corporations

Long-Term Liabilities

Investments

The Statement of Cash Flows

Financial Statement Analysis

Introduction to Managerial Accounting

Job Order Costing

Process Costing

Cost-Volume-Profit Analysis

Master Budgets

Flexible Budgets and Standard Cost Systems

Cost Allocation and Responsibility Accounting

Short-Term Business Decisions

Capital Investment Decisions

Filters