Exam 10: Long -Term Assets

The Equipment account would include all of the following costs except

The golden globe used to identify the publisher of a textbook is an example of a

The replacement of tires on a truck is considered an ordinary repair.

When a fully depreciated asset with a residual value is discarded

Which of the following would not be considered a capital expenditure?

When a company can prove it is worth more than its balance sheet indicates,it may record some goodwill.

Which of the following items is not classified as a natural resource?

A debit to Accumulated Depreciation will increase the carrying value of an asset.

Management has considerable latitude in making judgments and estimates regarding portions of an asset's cost to expense and to retain on the balance sheet.

How is Accumulated Depletion disclosed in the financial statements?

Mercado Photography purchased photographic equipment for $75,000.The equipment was to be used for ten years and had a $5,000 estimated residual value.After the company took three years of straight-line depreciation,it decided that the equipment would instead have a $2,000 residual value and a total useful life of eleven years.Calculate depreciation expense that should be recorded in year 4.(Show your work.)

Book value is another term for carrying value.

Partial-year depreciation may be rounded to the nearest whole month or the half-year convention may be used.

If the carrying value of goodwill is more than its fair value,an impairment loss must be recorded.

In 2014,Mansfield Mining purchased a mineral deposit for $12,000,000.It is estimated that 15,000,000 tons can be extracted from the mine.Calculate depletion expense during 2014 assuming 800,000 tons were extracted and 700,000 tons were sold.

According to generally accepted accounting principles,most expenditures for intangible assets acquired from others should be treated as revenue expenditures when incurred.

Additions and betterments are examples of capital expenditures.

Which of the following items would be considered a revenue expenditure?

Which of the following is not considered an intangible asset?

In the calculation of free cash flow,dividends and sales of plant assets are both deducted.