Question 1

If net sales revenue rises 5% while the average book value of fixed assets falls 5%:

Accepted Answer

A) the fixed asset turnover ratio will rise. 
B) the fixed asset turnover ratio will fall. 
C) the fixed asset turnover ratio will stay the same. 
D) the impact on the fixed asset turnover ratio cannot be determined since the beginning values are unknown. 
A) the fixed asset turnover ratio will rise. 
B) the fixed asset turnover ratio will fall. 
C) the fixed asset turnover ratio will stay the same. 
D) the impact on the fixed asset turnover ratio cannot be determined since the beginning values are unknown.

Question 2

When a company records depreciation it debits:

Accepted Answer

A) liabilities and credits expenses. 
B) expenses and credits cash. 
C) expenses and credits a contra-asset account. 
D) long-lived assets and credits expenses. 
A) liabilities and credits expenses. 
B) expenses and credits cash. 
C) expenses and credits a contra-asset account. 
D) long-lived assets and credits expenses.

Question 3

T.Powers Company's financial statements on December 31,2013,showed the following:   What is the fixed asset turnover for 2013 (rounded to two decimal places)?

Accepted Answer

A) 3.93 
B) 2.60 
C) 4.10 
D) 2.79 
A) 3.93 
B) 2.60 
C) 4.10 
D) 2.79

Question 4

Purrfect Pets has a facility that originally cost $375,000.The balance of the accumulated depreciation account for the facility is $258,000.The company expects to be able to sell the facility for $107,000 at the end of its useful life.The depreciable cost of the facility is:

Accepted Answer

A) $117,000. 
B) $151,000. 
C) $268,000. 
D) $107,000. 
A) $117,000. 
B) $151,000. 
C) $268,000. 
D) $107,000.

Question 5

Which of the following depreciation methods is most commonly used for tax purposes?

Accepted Answer

A) MACRS. 
B) Straight-line. 
C) Units-of-production. 
D) Double-declining balance. 
A) MACRS. 
B) Straight-line. 
C) Units-of-production. 
D) Double-declining balance.

If net sales revenue rises 5% while the average book value of fixed assets falls 5%:

When a company records depreciation it debits:

T.Powers Company's financial statements on December 31,2013,showed the following: What is the fixed asset turnover for 2013 (rounded to two decimal places)?

Purrfect Pets has a facility that originally cost $375,000.The balance of the accumulated depreciation account for the facility is $258,000.The company expects to be able to sell the facility for $107,000 at the end of its useful life.The depreciable cost of the facility is:

Which of the following depreciation methods is most commonly used for tax purposes?

Business Decisions and Financial Accounting

The Balance Sheet

The Income Statement

Adjustments, Financial Statements, and Financial Results

Financial Reporting and Analysis

Internal Control, Cash, and Merchandise Sales

Inventories and Cost of Goods Sold

Receivables, Bad Debt Expense, and Interest Revenue

Liabilities

Stockholders Equity

Statement of Cash Flows

Measuring and Evaluating Financial Performance

Filters

Exam 9: Long-Lived Tangible and Intangible Assets

If net sales revenue rises 5% while the average book value of fixed assets falls 5%:

When a company records depreciation it debits:

T.Powers Company's financial statements on December 31,2013,showed the following: What is the fixed asset turnover for 2013 (rounded to two decimal places)?

Purrfect Pets has a facility that originally cost $375,000.The balance of the accumulated depreciation account for the facility is $258,000.The company expects to be able to sell the facility for $107,000 at the end of its useful life.The depreciable cost of the facility is:

Which of the following depreciation methods is most commonly used for tax purposes?

Business Decisions and Financial Accounting

The Balance Sheet

The Income Statement

Adjustments, Financial Statements, and Financial Results

Financial Reporting and Analysis

Internal Control, Cash, and Merchandise Sales

Inventories and Cost of Goods Sold

Receivables, Bad Debt Expense, and Interest Revenue

Liabilities

Stockholders Equity

Statement of Cash Flows

Measuring and Evaluating Financial Performance

Filters