Question 1

Which of the following methods ignores residual value initially but eventually considers it in the calculation of depreciation?

Accepted Answer

A) Straight-line 
B) Double-declining-balance 
C) Group 
D) Production 
A) Straight-line 
B) Double-declining-balance 
C) Group 
D) Production

Question 2

The purchased right to reproduce and sell a computer program is covered by which intangible?

Accepted Answer

A) copyright. 
B) franchise. 
C) patent. 
D) trademark. 
A) copyright. 
B) franchise. 
C) patent. 
D) trademark.

Question 3

When calculating a partial year's depreciation,the length of time an asset has been owned usually is rounded to the nearest month.This rounding practice is justified by the principle or rule of

Accepted Answer

A) matching. 
B) materiality. 
C) conservatism. 
D) full disclosure. 
A) matching. 
B) materiality. 
C) conservatism. 
D) full disclosure.

Question 4

The copyright granting the exclusive rights to sell artistic materials and computer programs ends with the author's life.

Accepted Answer

A) True 
 B)False

Question 5

A copyright should be amortized over its legal life regardless of its expected useful life.

Accepted Answer

A) True 
 B)False

Question 6

In 2014,Barnes Enterprises purchased an oil well for $12,000,000.It is estimated that 80,000,000 barrels can be extracted from the well.Depletion expense during 2015,when 2,000,000 barrels were extracted and sold,totaled

Accepted Answer

A) $30,000. 
B) $300,000. 
C) $33,333. 
D) $3,333,333. 
A) $30,000. 
B) $300,000. 
C) $33,333. 
D) $3,333,333.

Question 7

When depreciation rates are revised,an adjustment for previous years' depreciation must be recorded.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following assets is not subject to depreciation,depletion,or amortization?

Accepted Answer

A) Land improvements,such as parking lots and fences 
B) Gas fields 
C) Land 
D) Patents 
A) Land improvements,such as parking lots and fences 
B) Gas fields 
C) Land 
D) Patents

Question 9

Accelerated depreciation assumes all of the following except that

Accepted Answer

A) asset benefit increases with each year of use. 
B) the asset provides more benefit in the early years. 
C) obsolescence makes an asset less valuable in its later years. 
D) repair expense is less in the early years than in the later years. 
A) asset benefit increases with each year of use. 
B) the asset provides more benefit in the early years. 
C) obsolescence makes an asset less valuable in its later years. 
D) repair expense is less in the early years than in the later years.

Question 10

Which of the following is not a characteristic of all long-term assets?

Accepted Answer

A) Possess physical substance 
B) Not for resale 
C) Used in operations of business 
D) Useful life of more than a year 
A) Possess physical substance 
B) Not for resale 
C) Used in operations of business 
D) Useful life of more than a year

Question 11

When an asset is sold,a gain is calculated as the difference between

Accepted Answer

A) sale price and the depreciable cost of the asset sold. 
B) sale price and the carrying value of the asset sold. 
C) carrying value and the residual value of the asset sold. 
D) sale price and the original cost of the asset sold. 
A) sale price and the depreciable cost of the asset sold. 
B) sale price and the carrying value of the asset sold. 
C) carrying value and the residual value of the asset sold. 
D) sale price and the original cost of the asset sold.

Question 12

Which of the following is not subject to depletion?

Accepted Answer

A) Timber tract 
B) Noncompete covenant 
C) Mine 
D) Oil field 
A) Timber tract 
B) Noncompete covenant 
C) Mine 
D) Oil field

Question 13

Under tax depreciation,estimated useful life and residual value must be strictly adhered to.

Accepted Answer

A) True 
 B)False

Question 14

Under what circumstances will a loss be recorded on the sale of equipment,and what effect will the loss have on stockholders' equity?

Accepted Answer

A loss will be recorded when the proceed

Question 15

An expenditure to lengthen the useful life of a company vehicle would require a

Accepted Answer

A) credit to Company Vehicles. 
B) debit to Repair and Maintenance Expense 
C) debit to Depreciation Expense. 
D) debit to Accumulated Depreciation. 
A) credit to Company Vehicles. 
B) debit to Repair and Maintenance Expense 
C) debit to Depreciation Expense. 
D) debit to Accumulated Depreciation.

Question 16

Which of the following depreciation methods is the most logical for a machine that produces discrete (i.e.,separate)units?

Accepted Answer

A) Double-declining-balance 
B) Straight-line 
C) Group 
D) Production 
A) Double-declining-balance 
B) Straight-line 
C) Group 
D) Production

Question 17

Which of the following costs normally is expensed in the year incurred,regardless of the extent of future benefit?

Accepted Answer

A) Technology 
B) Customer lists 
C) Research and development 
D) Leasehold improvements 
A) Technology 
B) Customer lists 
C) Research and development 
D) Leasehold improvements

Question 18

According to generally accepted accounting principles,the proper accounting treatment for the cost of a trademark that management feels will retain its value indefinitely is to

Accepted Answer

A) write the cost off immediately. 
B) amortize the cost over a reasonable life. 
C) amortize the cost over five years. 
D) carry the cost as an asset as long as circumstances continue to support an indefinite life. 
A) write the cost off immediately. 
B) amortize the cost over a reasonable life. 
C) amortize the cost over five years. 
D) carry the cost as an asset as long as circumstances continue to support an indefinite life.

Question 19

The term used to describe the allocation of the cost of an intangible asset to the periods it benefits is

Accepted Answer

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

Question 20

Intangible assets are also called wasting assets.

Accepted Answer

A) True 
 B)False

Which of the following methods ignores residual value initially but eventually considers it in the calculation of depreciation?

The purchased right to reproduce and sell a computer program is covered by which intangible?

When calculating a partial year's depreciation,the length of time an asset has been owned usually is rounded to the nearest month.This rounding practice is justified by the principle or rule of

The copyright granting the exclusive rights to sell artistic materials and computer programs ends with the author's life.

A copyright should be amortized over its legal life regardless of its expected useful life.

In 2014,Barnes Enterprises purchased an oil well for $12,000,000.It is estimated that 80,000,000 barrels can be extracted from the well.Depletion expense during 2015,when 2,000,000 barrels were extracted and sold,totaled

When depreciation rates are revised,an adjustment for previous years' depreciation must be recorded.

Which of the following assets is not subject to depreciation,depletion,or amortization?

Accelerated depreciation assumes all of the following except that

Which of the following is not a characteristic of all long-term assets?

When an asset is sold,a gain is calculated as the difference between

Which of the following is not subject to depletion?

Under tax depreciation,estimated useful life and residual value must be strictly adhered to.

Under what circumstances will a loss be recorded on the sale of equipment,and what effect will the loss have on stockholders' equity?

An expenditure to lengthen the useful life of a company vehicle would require a

Which of the following depreciation methods is the most logical for a machine that produces discrete (i.e.,separate)units?

Which of the following costs normally is expensed in the year incurred,regardless of the extent of future benefit?

According to generally accepted accounting principles,the proper accounting treatment for the cost of a trademark that management feels will retain its value indefinitely is to

The term used to describe the allocation of the cost of an intangible asset to the periods it benefits is

Intangible assets are also called wasting assets.

Accounting Principles and the Financial Statements

Analyzing and Recording Business Transactions

Adjusting the Accounts

Completing the Accounting Cycle

Foundations of Financial Reporting and the Classified Balance Sheet

Accounting for Merchandising Operations

Supplement: Accounting for Merchandising Operations

Inventories

Cash and Internal Control

Receivables

Current Liabilities and Fair Value Accounting

Accounting for Partnerships

Accounting for Corporations

Long Term Liabilities

The Statement of Cash Flows

Supplement: the Statement of Cash Flows

Financial Statement Analysis

Accounting for Investments

Filters

Exam 10: Long -Term Assets

Which of the following methods ignores residual value initially but eventually considers it in the calculation of depreciation?

The purchased right to reproduce and sell a computer program is covered by which intangible?

When calculating a partial year's depreciation,the length of time an asset has been owned usually is rounded to the nearest month.This rounding practice is justified by the principle or rule of

The copyright granting the exclusive rights to sell artistic materials and computer programs ends with the author's life.

A copyright should be amortized over its legal life regardless of its expected useful life.

In 2014,Barnes Enterprises purchased an oil well for $12,000,000.It is estimated that 80,000,000 barrels can be extracted from the well.Depletion expense during 2015,when 2,000,000 barrels were extracted and sold,totaled

When depreciation rates are revised,an adjustment for previous years' depreciation must be recorded.

Which of the following assets is not subject to depreciation,depletion,or amortization?

Accelerated depreciation assumes all of the following except that

Which of the following is not a characteristic of all long-term assets?

When an asset is sold,a gain is calculated as the difference between

Which of the following is not subject to depletion?

Under tax depreciation,estimated useful life and residual value must be strictly adhered to.

Under what circumstances will a loss be recorded on the sale of equipment,and what effect will the loss have on stockholders' equity?

An expenditure to lengthen the useful life of a company vehicle would require a

Which of the following depreciation methods is the most logical for a machine that produces discrete (i.e.,separate)units?

Which of the following costs normally is expensed in the year incurred,regardless of the extent of future benefit?

According to generally accepted accounting principles,the proper accounting treatment for the cost of a trademark that management feels will retain its value indefinitely is to

The term used to describe the allocation of the cost of an intangible asset to the periods it benefits is

Intangible assets are also called wasting assets.

Accounting Principles and the Financial Statements

Analyzing and Recording Business Transactions

Adjusting the Accounts

Completing the Accounting Cycle

Foundations of Financial Reporting and the Classified Balance Sheet

Accounting for Merchandising Operations

Supplement: Accounting for Merchandising Operations

Inventories

Cash and Internal Control

Receivables

Current Liabilities and Fair Value Accounting

Accounting for Partnerships

Accounting for Corporations

Long Term Liabilities

The Statement of Cash Flows

Supplement: the Statement of Cash Flows

Financial Statement Analysis

Accounting for Investments

Filters