Question 1

Intangible assets

Accepted Answer

A)  should be reported under the heading Property, Plant, and Equipment. 
B)  are not reported on the balance sheet because they lack physical substance. 
C)  should be reported as Current Assets on the balance sheet. 
D)  should be reported as a separate classification on the balance sheet. 
A)  should be reported under the heading Property, Plant, and Equipment. 
B)  are not reported on the balance sheet because they lack physical substance. 
C)  should be reported as Current Assets on the balance sheet. 
D)  should be reported as a separate classification on the balance sheet.

Question 2

A company sells a plant asset which originally cost $360,000 for $120,000 on December 31, 2015. The Accumulated Depreciation account had a balance of $144,000 after the current year's depreciation of $36,000 had been recorded. The company should recognize a

Accepted Answer

A)  $240,000 loss on disposal. 
B)  $96,000 gain on disposal. 
C)  $96,000 loss on disposal. 
D)  $60,000 loss on disposal. 
A)  $240,000 loss on disposal. 
B)  $96,000 gain on disposal. 
C)  $96,000 loss on disposal. 
D)  $60,000 loss on disposal.

Question 3

Improvements are

Accepted Answer

A)  revenue expenditures. 
B)  debited to an appropriate asset account when they increase useful life. 
C)  debited to accumulated depreciation when they do not increase useful life. 
D)  debited to an appropriate expense account when they do not increase useful life. 
A)  revenue expenditures. 
B)  debited to an appropriate asset account when they increase useful life. 
C)  debited to accumulated depreciation when they do not increase useful life. 
D)  debited to an appropriate expense account when they do not increase useful life.

Question 4

A term that is not synonymous with property, plant, and equipment is

Accepted Answer

A)  plant assets. 
B)  fixed assets. 
C)  intangible assets. 
D)  long-lived tangible assets. 
A)  plant assets. 
B)  fixed assets. 
C)  intangible assets. 
D)  long-lived tangible assets.

Question 5

Mott Company uses the units-of-activity method in computing depreciation. A new plant asset is purchased for $48,000 that will produce an estimated 100,000 units over its useful life. Estimated salvage value at the end of its useful life is $4,000. What is the depreciation cost per unit?

Accepted Answer

A)  $4.40 
B)  $4.80 
C)  $.44 
D)  $.48 
A)  $4.40 
B)  $4.80 
C)  $.44 
D)  $.48

Question 6

Recording depreciation each period is necessary in accordance with the

Accepted Answer

A)  going concern principle. 
B)  historical cost principle. 
C)  expense recognition principle. 
D)  asset valuation principle. 
A)  going concern principle. 
B)  historical cost principle. 
C)  expense recognition principle. 
D)  asset valuation principle.

Intangible assets

A company sells a plant asset which originally cost $360,000 for $120,000 on December 31, 2015. The Accumulated Depreciation account had a balance of $144,000 after the current year's depreciation of $36,000 had been recorded. The company should recognize a

Improvements are

A term that is not synonymous with property, plant, and equipment is

Mott Company uses the units-of-activity method in computing depreciation. A new plant asset is purchased for $48,000 that will produce an estimated 100,000 units over its useful life. Estimated salvage value at the end of its useful life is $4,000. What is the depreciation cost per unit?

Recording depreciation each period is necessary in accordance with the

Accounting in Action

The Recording Process

Adjusting the Accounts

Completing the Accounting Cycle

Accounting for Merchandising Operations

Inventories

Fraud, Internal Control, and Cash

Accounting for Receivables

Liabilities

Corporations: Organization, Stock Transactions, Dividends, and Retained Earnings

Investments

Statement of Cash Flows

Financial Statement Analysis

Managerial Accounting

Filters

Exam 9: Plant Assets, Natural Resources, and Intangible Assets

Intangible assets

A company sells a plant asset which originally cost $360,000 for $120,000 on December 31, 2015. The Accumulated Depreciation account had a balance of $144,000 after the current year's depreciation of $36,000 had been recorded. The company should recognize a

Improvements are

A term that is not synonymous with property, plant, and equipment is

Mott Company uses the units-of-activity method in computing depreciation. A new plant asset is purchased for $48,000 that will produce an estimated 100,000 units over its useful life. Estimated salvage value at the end of its useful life is $4,000. What is the depreciation cost per unit?

Recording depreciation each period is necessary in accordance with the

Accounting in Action

The Recording Process

Adjusting the Accounts

Completing the Accounting Cycle

Accounting for Merchandising Operations

Inventories

Fraud, Internal Control, and Cash

Accounting for Receivables

Liabilities

Corporations: Organization, Stock Transactions, Dividends, and Retained Earnings

Investments

Statement of Cash Flows

Financial Statement Analysis

Managerial Accounting

Filters