Question 1

Capital expenditures would include:

Accepted Answer

A) additions. 
B) betterments. 
C) extraordinary repairs. 
D) All of these answers are correct. 
A) additions. 
B) betterments. 
C) extraordinary repairs. 
D) All of these answers are correct.

Question 2

For each of the following, identify in column 1 the category to which the account belongs, in column 2 the normal balance for the account, in column 3 the financial statement that the account in which the account balance is reported, and in column 4 the account's nature (permanent/temporary).
-$\begin{array} { | l | l | l | l | l | } 
\hline & \text { Column 1 } & \text { Column } 2 & \text { Column } 3 & \text { Column } 4 \
\hline \text { Accumulated } & & & & \
\text { depletion coal } & & & & \
\text { mine } & & & & \
\hline
\end{array}$

Accepted Answer

The answer of For each of the following, identify in...

Question 3

Assets that are not expected to provide benefits for a number of accounting periods are called:

Accepted Answer

A) current assets. 
B) fixed assets. 
C) long-term assets. 
D) property,plant,and equipment. 
A) current assets. 
B) fixed assets. 
C) long-term assets. 
D) property,plant,and equipment.

Question 4

For each of the following, identify in column 1 the category to which the account belongs, in column 2 the normal balance for the account, in column 3 the financial statement that the account in which the account balance is reported, and in column 4 the account's nature (permanent/temporary).
-$\begin{array} { | l | l | l | l | l | } 
\hline & \text { Column } 1 & \text { Column } 2 & \text { Column } 3 & \text { Column } 4 \
\hline \begin{array} { l } 
\text { Depletion of coal } \
\text { mine }
\end{array} & & & \
\hline
\end{array}$

Accepted Answer

The answer of For each of the following, identify in...

Question 5

For each of the following, identify in column 1 the category to which the account belongs, in column 2 the normal balance for the account, in column 3 the financial statement that the account in which the account balance is reported, and in column 4 the account's nature (permanent/temporary).
-$\begin{array} { | l | l | l | l | l | } 
\hline & \text { Column 1 } & \text { Column } 2 & \text { Column } 3 & \text { Column } 4 \
\hline \begin{array} { l } 
\text { Accumulated } \
\text { depreciation }
\end{array} & & & & \
\hline
\end{array}$

Accepted Answer

The answer of For each of the following, identify in...

Question 6

According to the MACRS tax rate table,the following classes use straight-line depreciation:

Accepted Answer

A) residential rental property. 
B) automobiles. 
C) railroad tracks. 
D) race horses. 
A) residential rental property. 
B) automobiles. 
C) railroad tracks. 
D) race horses.

Question 7

The credit portion of the adjustment for the depletion of a coal mine was credited to the Coal Mine account.This error would cause:

Accepted Answer

A) the period's net income to be overstated. 
B) the period's net income to be understated. 
C) the period end assets to be overstated. 
D) None of these are correct. 
A) the period's net income to be overstated. 
B) the period's net income to be understated. 
C) the period end assets to be overstated. 
D) None of these are correct.

Question 8

The intangible that can have the longest life before renewal is a ________.

Accepted Answer

The answer of The intangible that can have the longest...

Question 9

A depreciation method that allocates depreciation of a plant asset based on the Tax Act of 1989 is the:

Accepted Answer

A) straight-line method. 
B) units-of-production method. 
C) modified accelerated cost recovery method. 
D) double-declining-balance method. 
A) straight-line method. 
B) units-of-production method. 
C) modified accelerated cost recovery method. 
D) double-declining-balance method.

Question 10

Double-declining-balance method is used in the first year when straight-line should be used.This error would cause:

Accepted Answer

A) the period's net income to be overstated. 
B) the period's net income to be understated. 
C) the period end assets to be overstated. 
D) None of these are correct. 
A) the period's net income to be overstated. 
B) the period's net income to be understated. 
C) the period end assets to be overstated. 
D) None of these are correct.

Question 11

The allocation of the cost of a natural resource is:

Accepted Answer

A) depreciation. 
B) depletion. 
C) amortization. 
D) accrual. 
A) depreciation. 
B) depletion. 
C) amortization. 
D) accrual.

Question 12

To calculate the double-declining-balance rate,you would divide 2 by the number of years of useful life.

Accepted Answer

A) True 
 B)False

Question 13

J.Long purchased computer equipment for $5,000 on January 1,200x.It has a residual value of $500 with a useful life of 5 years.After the appropriate adjusting entries are made,the book value of the asset on December 31,200x,under the double-declining-balance method,is:

Accepted Answer

A) $4,000. 
B) $3,200. 
C) $3,000. 
D) $4,100. 
A) $4,000. 
B) $3,200. 
C) $3,000. 
D) $4,100.

Question 14

Mount Company purchased a machine at an invoice cost of $21,000 subject to terms of 3/10,n/30.The discount was taken.Additional costs were installation,$1200; insurance on the machine after it was in operation,$370.The total cost to be added to the machinery account is:

Accepted Answer

A) $21,940. 
B) $21,000. 
C) $21,570. 
D) $20,740. 
A) $21,940. 
B) $21,000. 
C) $21,570. 
D) $20,740.

Question 15

Under MACRS,furniture is depreciated over five years.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following is an example of a land improvement?

Accepted Answer

A) Shrubbery 
B) Fences 
C) Driveway 
D) All of these answers are correct. 
A) Shrubbery 
B) Fences 
C) Driveway 
D) All of these answers are correct.

Question 17

The entry to record the payment of an extraordinary repair of $5,000 that will extend the life of the machine 5 years,when the machine cost $30,000,and has accumulated depreciation of $26,000,is to:

Accepted Answer

A) debit Machinery $5,000; credit Accumulated Depreciation $5,000. 
B) debit Accumulated Depreciation $5,000; credit Cash $5,000. 
C) debit Accumulated Depreciation $1,000; credit Cash $1,000. 
D) debit Machinery $1,000; credit Cash $1,000. 
A) debit Machinery $5,000; credit Accumulated Depreciation $5,000. 
B) debit Accumulated Depreciation $5,000; credit Cash $5,000. 
C) debit Accumulated Depreciation $1,000; credit Cash $1,000. 
D) debit Machinery $1,000; credit Cash $1,000.

Question 18

A loss on the sale of an asset would occur when:

Accepted Answer

A) the cash received is less than the book value of the asset. 
B) the cash received is equal to the book value of the asset. 
C) the cash received is greater than the book value of the asset. 
D) None of these answers are correct. 
A) the cash received is less than the book value of the asset. 
B) the cash received is equal to the book value of the asset. 
C) the cash received is greater than the book value of the asset. 
D) None of these answers are correct.

Question 19

For each of the following, identify in column 1 the category to which the account belongs, in column 2 the normal balance for the account, in column 3 the financial statement that the account in which the account balance is reported, and in column 4 the account's nature (permanent/temporary).
-$\begin{array} { | l | l | l | l | l | } 
\hline & \text { Column } 1 & \text { Column } 2 & \text { Column } 3 & \text { Column } 4 \
\hline \text { Loss on disposal } & & & & \
\text { of plant asset } & & & & \
\hline
\end{array}$

Accepted Answer

The answer of For each of the following, identify in...

Question 20

For each of the following, identify in column 1 the category to which the account belongs, in column 2 the normal balance for the account, in column 3 the financial statement that the account in which the account balance is reported, and in column 4 the account's nature (permanent/temporary).
-$\begin{array} { | l | l | l | l | l | } 
\hline & \text { Column } 1 & \text { Column 2 } & \text { Column } 3 & \text { Column } 4 \
\hline \text { Loss from fire } & & & & \
\hline
\end{array}$

Accepted Answer

The answer of For each of the following, identify in...

Capital expenditures would include:

Assets that are not expected to provide benefits for a number of accounting periods are called:

According to the MACRS tax rate table,the following classes use straight-line depreciation:

The credit portion of the adjustment for the depletion of a coal mine was credited to the Coal Mine account.This error would cause:

The intangible that can have the longest life before renewal is a ________.

A depreciation method that allocates depreciation of a plant asset based on the Tax Act of 1989 is the:

Double-declining-balance method is used in the first year when straight-line should be used.This error would cause:

The allocation of the cost of a natural resource is:

To calculate the double-declining-balance rate,you would divide 2 by the number of years of useful life.

J.Long purchased computer equipment for $5,000 on January 1,200x.It has a residual value of $500 with a useful life of 5 years.After the appropriate adjusting entries are made,the book value of the asset on December 31,200x,under the double-declining-balance method,is:

Mount Company purchased a machine at an invoice cost of $21,000 subject to terms of 3/10,n/30.The discount was taken.Additional costs were installation,$1200; insurance on the machine after it was in operation,$370.The total cost to be added to the machinery account is:

Under MACRS,furniture is depreciated over five years.

Which of the following is an example of a land improvement?

The entry to record the payment of an extraordinary repair of $5,000 that will extend the life of the machine 5 years,when the machine cost $30,000,and has accumulated depreciation of $26,000,is to:

A loss on the sale of an asset would occur when:

Accounting Concepts and Procedures

Debits and Credits: Analyzing and Recording Business Transactions

Beginning the Accounting Cycle

The Accounting Cycle Continued

The Accounting Cycle Completed

Banking Procedure and Control of Cash

Calculating Pay and Payroll Taxes: The Beginning of the Payroll Process

Paying,recording,and Reporting Payroll and Payroll Taxes: The Conclusion of the Payroll Process

Sales and Cash Receipts

Purchases and Cash Payments

Preparing a Worksheet for a Merchandise Company

Completion of the Accounting Cycle for a Merchandise Company

Accounting for Bad Debts

Notes Receivable and Notes Payable

Accounting for Merchandise Inventory

Partnership

Corporations: Organizations and Stock

Corporations: Stock Values, dividends, treasury Stocks, and Retained Earnings

Corporations and Bonds Payable

Statement of Cash Flows

Analyzing Financial Statements

The Voucher System

Departmental Accounting

Manufacturing Accounting

Filters

Exam 16: Accounting for Property, plant, equipment, and Intangible Assets

Capital expenditures would include:

Assets that are not expected to provide benefits for a number of accounting periods are called:

According to the MACRS tax rate table,the following classes use straight-line depreciation:

The credit portion of the adjustment for the depletion of a coal mine was credited to the Coal Mine account.This error would cause:

The intangible that can have the longest life before renewal is a ________.

A depreciation method that allocates depreciation of a plant asset based on the Tax Act of 1989 is the:

Double-declining-balance method is used in the first year when straight-line should be used.This error would cause:

The allocation of the cost of a natural resource is:

To calculate the double-declining-balance rate,you would divide 2 by the number of years of useful life.

J.Long purchased computer equipment for $5,000 on January 1,200x.It has a residual value of $500 with a useful life of 5 years.After the appropriate adjusting entries are made,the book value of the asset on December 31,200x,under the double-declining-balance method,is:

Mount Company purchased a machine at an invoice cost of $21,000 subject to terms of 3/10,n/30.The discount was taken.Additional costs were installation,$1200; insurance on the machine after it was in operation,$370.The total cost to be added to the machinery account is:

Under MACRS,furniture is depreciated over five years.

Which of the following is an example of a land improvement?

The entry to record the payment of an extraordinary repair of $5,000 that will extend the life of the machine 5 years,when the machine cost $30,000,and has accumulated depreciation of $26,000,is to:

A loss on the sale of an asset would occur when:

Accounting Concepts and Procedures

Debits and Credits: Analyzing and Recording Business Transactions

Beginning the Accounting Cycle

The Accounting Cycle Continued

The Accounting Cycle Completed

Banking Procedure and Control of Cash

Calculating Pay and Payroll Taxes: The Beginning of the Payroll Process

Paying,recording,and Reporting Payroll and Payroll Taxes: The Conclusion of the Payroll Process

Sales and Cash Receipts

Purchases and Cash Payments

Preparing a Worksheet for a Merchandise Company

Completion of the Accounting Cycle for a Merchandise Company

Accounting for Bad Debts

Notes Receivable and Notes Payable

Accounting for Merchandise Inventory

Partnership

Corporations: Organizations and Stock

Corporations: Stock Values, dividends, treasury Stocks, and Retained Earnings

Corporations and Bonds Payable

Statement of Cash Flows

Analyzing Financial Statements

The Voucher System

Departmental Accounting

Manufacturing Accounting

Filters