Question 1

The relevance principle requires that property,plant and equipment be reported at book value rather than at market value.

Accepted Answer

A) True 
 B)False

Question 2

Discuss accounting for intangible assets.

Accepted Answer

Intangible assets are recorded at acquis

Question 3

During 2016,Melanie's Emporium exchanged an old truck costing $18,000 with accumulated depreciation of $13,000 to the date of exchange for a new truck.The new truck had a cash price of $30,000 and Melanie received a $6,000 trade-in allowance on the old truck.This transaction has commercial substance.Prepare the journal entry to record the exchange.

Accepted Answer

The answer of During 2016,Melanie's Emporium exchanged an old truck...

Question 4

The cost principle requires that an asset be recorded at the cash or cash equivalent amount given in exchange.

Accepted Answer

A) True 
 B)False

Question 5

The appropriate way to amortize goodwill is:

Accepted Answer

A)  Straight-line over a maximum of 40 years. 
B)  Straight-line over a maximum of 20 years. 
C)  Double-declining-balance over a period not to exceed 20 years. 
D)  Over the estimated useful life of the goodwill. 
E)  Goodwill is not amortized or depreciated. 
A)  Straight-line over a maximum of 40 years. 
B)  Straight-line over a maximum of 20 years. 
C)  Double-declining-balance over a period not to exceed 20 years. 
D)  Over the estimated useful life of the goodwill. 
E)  Goodwill is not amortized or depreciated.

Question 6

SportsWorld discarded a display case it had purchased for $8,000.$7,200 in accumulated depreciation had been recorded to the date of sale.SportsWorld should recognize a gain or loss on disposal of:

Accepted Answer

A)  $0. 
B)  $800 loss. 
C)  $800 gain. 
D)  $8,000 loss. 
E)  $7,200 loss. 
A)  $0. 
B)  $800 loss. 
C)  $800 gain. 
D)  $8,000 loss. 
E)  $7,200 loss.

Question 7

GenX Music purchased a music distributor's collection of songs for $1,423,000.The copyrights are expected to last another 34 years.Prepare the journal entry to record the amortization expense for the first year.

Accepted Answer

@#IMG-DLM& $1,423,00

Question 8

Intangible assets provide rights,privileges,and competitive advantages to the owner,are used in operations,and have no physical substance.

Accepted Answer

A) True 
 B)False

Question 9

Intangible assets should be amortized over their anticipated legal,regulatory,contractual,competitive or economic life.

Accepted Answer

A) True 
 B)False

Question 10

A machine was purchased for $37,000 and depreciated for 5 years on a straight-line basis under the assumption it would have a 10-year life and a $1,000 residual value.At the beginning of the machine's sixth year,it was recognized that it had 3 years of remaining life left,instead of five,and that at the end of the 3 years its residual value would be $1,600.What should the annual depreciation be for the machine's remaining years?

Accepted Answer

The answer of A machine was purchased for $37,000 and...

Question 11

Property,plant and equipment are:

Accepted Answer

A)  Tangible assets used in the operation of a business having a useful life of more than one accounting period. 
B)  Current assets. 
C)  Long-term investments. 
D)  Intangible assets used in the operations of a business having a useful life of more than one accounting period. 
E)  Tangible assets used in the operation of business having a useful life of less than one accounting period. 
A)  Tangible assets used in the operation of a business having a useful life of more than one accounting period. 
B)  Current assets. 
C)  Long-term investments. 
D)  Intangible assets used in the operations of a business having a useful life of more than one accounting period. 
E)  Tangible assets used in the operation of business having a useful life of less than one accounting period.

Question 12

Financial accounting and tax accounting require the same recordkeeping; therefore,there should be no difference in results between the two accounting systems.

Accepted Answer

A) True 
 B)False

Question 13

Once the estimated depreciation for an asset is calculated:

Accepted Answer

A)  It cannot be changed due to the historical cost principle. 
B)  It may be revised based on new information. 
C)  Any changes are accumulated and recognized when the asset is sold. 
D)  The estimate itself cannot be changed,however,new information should be disclosed in financial statement footnotes. 
E)  It may be revised based on new information and any changes are accumulated and recognized when the asset is sold. 
A)  It cannot be changed due to the historical cost principle. 
B)  It may be revised based on new information. 
C)  Any changes are accumulated and recognized when the asset is sold. 
D)  The estimate itself cannot be changed,however,new information should be disclosed in financial statement footnotes. 
E)  It may be revised based on new information and any changes are accumulated and recognized when the asset is sold.

Question 14

Discuss the four issues in accounting for property,plant and equipment.

Accepted Answer

Property,plant and equipment are tangibl

Question 15

Hertzog Company purchased and installed a machine on February 1,2014,at a total cost of $72,000.Straight-line depreciation was calculated based on the assumption of a five-year life and no residual value.The machine was disposed of on July 31,2017.
Assuming the machine was sold for $15,000,prepare the general journal entry to record the disposal.

Accepted Answer

The answer of Hertzog Company purchased and installed a machine...

Question 16

Primadonna Company paid $870,000 plus $10,000 in legal costs for a parcel of real estate.This included land appraised at $350,000; land improvements appraised at $80,000; and a building appraised at $370,000.The plan is to use the building as a manufacturing plant.Determine the amounts that should be debited to:   Take all percentages to two decimals,e.g.12.35%

Accepted Answer

The answer of Primadonna Company paid $870,000 plus $10,000 in...

Question 17

Creek Construction purchased a machine for $26,000.It traded in an old machine and received a $4,200 trade-in allowance.The old machine cost $24,000 and had accumulated depreciation of $16,000 to the date of trade-in.At what value should be new asset be recorded?

Accepted Answer

A)  $21,800. 
B)  $24,000. 
C)  $26,000. 
D)  $29,800. 
E)  $30,200. 
A)  $21,800. 
B)  $24,000. 
C)  $26,000. 
D)  $29,800. 
E)  $30,200.

Question 18

Alpha Co paid $180,000 to purchase a piece of land on which to build a new building.Additional costs incurred were:   What dollar amount of the above costs should be allocated to Land and what amount should be allocated to the new Building?

Accepted Answer

$180,000 + $10,800 + $1,400 +

Question 19

Compare the three different depreciation methods: straight-line,units of production,and double-declining balance.

Accepted Answer

The amount of depreciation expense per p

Question 20

The cost of developing,maintaining,or enhancing the value of a trademark is capitalized,or added to the value of the asset when incurred.

Accepted Answer

A) True 
 B)False

The relevance principle requires that property,plant and equipment be reported at book value rather than at market value.

Discuss accounting for intangible assets.

The cost principle requires that an asset be recorded at the cash or cash equivalent amount given in exchange.

The appropriate way to amortize goodwill is:

SportsWorld discarded a display case it had purchased for $8,000.$7,200 in accumulated depreciation had been recorded to the date of sale.SportsWorld should recognize a gain or loss on disposal of:

GenX Music purchased a music distributor's collection of songs for $1,423,000.The copyrights are expected to last another 34 years.Prepare the journal entry to record the amortization expense for the first year.

Intangible assets provide rights,privileges,and competitive advantages to the owner,are used in operations,and have no physical substance.

Intangible assets should be amortized over their anticipated legal,regulatory,contractual,competitive or economic life.

Property,plant and equipment are:

Financial accounting and tax accounting require the same recordkeeping; therefore,there should be no difference in results between the two accounting systems.

Once the estimated depreciation for an asset is calculated:

Discuss the four issues in accounting for property,plant and equipment.

Creek Construction purchased a machine for $26,000.It traded in an old machine and received a $4,200 trade-in allowance.The old machine cost $24,000 and had accumulated depreciation of $16,000 to the date of trade-in.At what value should be new asset be recorded?

Alpha Co paid $180,000 to purchase a piece of land on which to build a new building.Additional costs incurred were: What dollar amount of the above costs should be allocated to Land and what amount should be allocated to the new Building?

Compare the three different depreciation methods: straight-line,units of production,and double-declining balance.

The cost of developing,maintaining,or enhancing the value of a trademark is capitalized,or added to the value of the asset when incurred.

Current Liabilities

Partnerships

Organization and Operation of Corporations

Corporate Reporting: Income,earnings Per Share,and Retained Earnings

Bonds and Long-Term Notes Payable

Accounting for Debt and Share Investments

Reporting and Analyzing Cash Flows

Analyzing Financial Statements

Filters

Exam 10: Property,plant and Equipment,and Intangibles

The relevance principle requires that property,plant and equipment be reported at book value rather than at market value.

Discuss accounting for intangible assets.

The cost principle requires that an asset be recorded at the cash or cash equivalent amount given in exchange.

The appropriate way to amortize goodwill is:

SportsWorld discarded a display case it had purchased for $8,000.$7,200 in accumulated depreciation had been recorded to the date of sale.SportsWorld should recognize a gain or loss on disposal of:

GenX Music purchased a music distributor's collection of songs for $1,423,000.The copyrights are expected to last another 34 years.Prepare the journal entry to record the amortization expense for the first year.

Intangible assets provide rights,privileges,and competitive advantages to the owner,are used in operations,and have no physical substance.

Intangible assets should be amortized over their anticipated legal,regulatory,contractual,competitive or economic life.

Property,plant and equipment are:

Financial accounting and tax accounting require the same recordkeeping; therefore,there should be no difference in results between the two accounting systems.

Once the estimated depreciation for an asset is calculated:

Discuss the four issues in accounting for property,plant and equipment.

Creek Construction purchased a machine for $26,000.It traded in an old machine and received a $4,200 trade-in allowance.The old machine cost $24,000 and had accumulated depreciation of $16,000 to the date of trade-in.At what value should be new asset be recorded?

Alpha Co paid $180,000 to purchase a piece of land on which to build a new building.Additional costs incurred were: What dollar amount of the above costs should be allocated to Land and what amount should be allocated to the new Building?

Compare the three different depreciation methods: straight-line,units of production,and double-declining balance.

The cost of developing,maintaining,or enhancing the value of a trademark is capitalized,or added to the value of the asset when incurred.

Current Liabilities

Partnerships

Organization and Operation of Corporations

Corporate Reporting: Income,earnings Per Share,and Retained Earnings

Bonds and Long-Term Notes Payable

Accounting for Debt and Share Investments

Reporting and Analyzing Cash Flows

Analyzing Financial Statements

Filters