Question 1

Intangible assets ________.

Accepted Answer

A) always have a definite life 
B) that are purchased are recorded at cost 
C) are always expensed through amortization 
D) with definite lives are tested annually for impairment 
A) always have a definite life 
B) that are purchased are recorded at cost 
C) are always expensed through amortization 
D) with definite lives are tested annually for impairment

Question 2

Plant assets are reported at book value on the balance sheet.

Accepted Answer

A) True 
 B)False

Question 3

Goodwill is the excess cost of an acquired company over the market value of its net assets.

Accepted Answer

A) True 
 B)False

Question 4

Fred,Inc.owns a delivery truck.Which of the following costs,associated with the truck,will be capitalized and depreciated?

Accepted Answer

A) modification for new use 
B) change of oil filters 
C) replacement of tires 
D) normal engine repair 
A) modification for new use 
B) change of oil filters 
C) replacement of tires 
D) normal engine repair

Question 5

Which of the following depreciation methods allocates a higher amount of depreciation in earlier years than in later years?

Accepted Answer

A) the units-of-production method 
B) the straight-line method 
C) the double-declining-balance method 
D) the first-in,first-out method 
A) the units-of-production method 
B) the straight-line method 
C) the double-declining-balance method 
D) the first-in,first-out method

Question 6

On October 1,2017,Nurix,Inc.purchased a patent for $100,000 cash.Although the patent gives legal protection for 20 years,it is expected to be used for only eight years.Journalize the purchase of the patent.

Accepted Answer

The answer of On October 1,2017,Nurix,Inc.purchased a patent for $100,000...

Question 7

A trademark should not be amortized over its useful life.

Accepted Answer

A) True 
 B)False

Question 8

When a plant asset is sold for less than its book value,a gain is recorded.

Accepted Answer

A) True 
 B)False

Question 9

The process by which businesses allocate a natural resource's cost over its usage is known as depreciation.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following is an expense that results from the usage of a natural resource?

Accepted Answer

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

Question 11

Companies are required to report plant assets as a single amount,with a note to the financial statements that provides detailed information.

Accepted Answer

A) True 
 B)False

Question 12

The use of MACRS is acceptable for financial reporting under GAAP.

Accepted Answer

A) True 
 B)False

Question 13

A trademark represents distinctive identifications of products or services.

Accepted Answer

A) True 
 B)False

Question 14

On January 1,2017,Blizzard Manufacturing Corporation purchased a machine for $40,000,000.The corporation expects to use the machine for 24,000 hours over the next six years.The estimated residual value of the machine at the end of the sixth year is $40,000.The corporation used the machine for 3,600 hours in 2017 and 5,000 hours in 2018.What is the depreciation expense for 2017 and 2018 if the corporation uses the double-declining-balance method of depreciation?

Accepted Answer

Double-declining-balance depreciation =

Question 15

Wash N' Set Corp.purchased equipment for $45,000.Total depreciation of $36,000 was recorded.On January 1,2017,Wash N' Set exchanges the equipment for new equipment,paying $54,000 cash.The market value of the new equipment is $65,000.Prepare the journal entry to record this transaction.Assume the exchange has commercial substance.

Accepted Answer

@#IMG-DLM&
Explanation:
Calcul

Question 16

Which of the following depreciation methods allocates a varying amount of depreciation each year based on an asset's usage?

Accepted Answer

A) the straight-line method 
B) the annuity method 
C) the units-of-production method 
D) the double-declining-balance method 
A) the straight-line method 
B) the annuity method 
C) the units-of-production method 
D) the double-declining-balance method

Question 17

The asset turnover ratio measures the amount of net sales generated for each average dollar of total assets invested.

Accepted Answer

A) True 
 B)False

Question 18

The asset turnover ratio measures ________.

Accepted Answer

A) how efficiently a business uses its sales to finance the assets 
B) how efficiently a business uses its average total assets to generate sales 
C) how efficiently a business uses its net profit to finance the assets 
D) how the ending inventory helps increase the value of assets 
A) how efficiently a business uses its sales to finance the assets 
B) how efficiently a business uses its average total assets to generate sales 
C) how efficiently a business uses its net profit to finance the assets 
D) how the ending inventory helps increase the value of assets

Question 19

For each of the following amounts paid by a purchaser,determine whether the amount is debited to Land,Land Improvements,or Building.

Accepted Answer

The answer of For each of the following amounts paid...

Question 20

A natural resource is an asset that comes from the earth and is consumed.

Accepted Answer

A) True 
 B)False

Exam 10: Plant Assets, natural Resources, and Intangibles

Intangible assets ________.

Plant assets are reported at book value on the balance sheet.

Goodwill is the excess cost of an acquired company over the market value of its net assets.

Fred,Inc.owns a delivery truck.Which of the following costs,associated with the truck,will be capitalized and depreciated?

Which of the following depreciation methods allocates a higher amount of depreciation in earlier years than in later years?

On October 1,2017,Nurix,Inc.purchased a patent for $100,000 cash.Although the patent gives legal protection for 20 years,it is expected to be used for only eight years.Journalize the purchase of the patent.

A trademark should not be amortized over its useful life.

When a plant asset is sold for less than its book value,a gain is recorded.

The process by which businesses allocate a natural resource's cost over its usage is known as depreciation.

Which of the following is an expense that results from the usage of a natural resource?

Companies are required to report plant assets as a single amount,with a note to the financial statements that provides detailed information.

The use of MACRS is acceptable for financial reporting under GAAP.

A trademark represents distinctive identifications of products or services.

Which of the following depreciation methods allocates a varying amount of depreciation each year based on an asset's usage?

The asset turnover ratio measures the amount of net sales generated for each average dollar of total assets invested.

The asset turnover ratio measures ________.

For each of the following amounts paid by a purchaser,determine whether the amount is debited to Land,Land Improvements,or Building.

A natural resource is an asset that comes from the earth and is consumed.

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