A) can be recorded when generated internally. B) can be subdivided and sold in parts. C) can only be identified with the business as a whole. D) need not be tested annually for impairment. A) can be recorded when generated internally. B) can be subdivided and sold in parts. C) can only be identified with the business as a whole. D) need not be tested annually for impairment.

A) is always expensed upon purchase. B) can be sold by itself to another company. C) can be purchased and charged directly to shareholders' equity. D) is the excess of cost paid to acquire a business over the fair value of the net identifiable assets of the business. A) is always expensed upon purchase. B) can be sold by itself to another company. C) can be purchased and charged directly to shareholders' equity. D) is the excess of cost paid to acquire a business over the fair value of the net identifiable assets of the business.

Exam 9: Reporting and Analyzing Long-Lived Assets

Use the following information for questions On January 1, 2022, Anvil Corp.purchased equipment for $60,000.It was expected to last 5 years, after which it will be sold for $5,000.It is expected to be used for a total of 10,000 machine hours, and was used for 750 hours during the year ended December 31, 2022. -The depreciation expense for 2022 using the units-of-production method will be

(Multiple Choice)

4.8/5

(44)

Question 81

When purchasing land, the costs for clearing, draining, filling, and grading should be charged to a Land Improvements account.

(True/False)

4.8/5

(41)

Question 82

The carrying amount of an asset is the original cost less anticipated residual value.

(True/False)

4.8/5

(41)

Question 83

All property, plant, and equipment must be depreciated for accounting purposes.

(True/False)

4.8/5

(37)

Question 84

Which of the following would not be included in the Equipment account?

(Multiple Choice)

4.8/5

(37)

Question 85

If a company wants to increase its return on assets, it should not

(Multiple Choice)

4.7/5

(38)

Question 86

Beynon Corp.purchased office equipment for $20,000, with an estimated residual value of $4,000 at the end of its 8-year useful life.Assuming the double diminishing-balance method is used, the constant percentage to be applied against the carrying amount each year is

(Multiple Choice)

4.9/5

(35)

Question 87

The cost of a depreciable long-lived asset is expensed

(Multiple Choice)

4.9/5

(25)

Question 88

When a change in estimate is made, there is no correction of previously recorded depreciation expense.

(True/False)

4.8/5

(41)

Question 89

A company purchased land for $120,000 cash; $7,000 was spent to demolish an old building on the land before construction of a new building could start; and $1,500 was received for material salvaged from the old building.The cost of the land would be recorded at

(Multiple Choice)

4.7/5

(30)

Question 90

Goodwill

(Multiple Choice)

4.8/5

(37)

Question 91

Carrying amount is used in determining the amount that the diminishing-balance rate is applied to.

(True/False)

4.8/5

(29)

Question 92

An asset with a cost of $45,000 was sold for $9,500 and resulted in a gain of $2,000.How much was accumulated depreciation at the time of sale?

(Multiple Choice)

4.9/5

(36)

Question 93

The return on assets (ROA) ratio is calculated as:

(Multiple Choice)

4.8/5

(40)

Question 94

Goodwill

(Multiple Choice)

4.8/5

(38)

Question 95

Mandeep Ltd.has decided to change the estimate of the useful life of an asset that has been in service for two years.Which of the following statements describes the proper way to revise a useful life estimate?

(Multiple Choice)

4.9/5

(34)

Question 96

Copyrights are granted by the Canadian Intellectual Property Office

(Multiple Choice)

4.9/5

(38)

Question 97

Boulder Corp.has the following assets: Buildings and Equipment (net) $12,500,000 Trade Receivables 1,600,000 Inventory 2,300,000 Land 1,500,000 The total amount reported under Property, Plant, and Equipment would be

(Multiple Choice)

4.9/5

(35)

Question 98

On October 1, 2022, Benji Corporation purchased a copyright for $100,000.It is estimated that the copyright will have a useful life of 8 years with no residual value.The amount of amortization expense recognized for the calendar year 2022 would be

(Multiple Choice)

4.8/5

(37)

Question 99

The difference between a depreciable asset's cost and its residual value is called

(Multiple Choice)

4.8/5

(39)

Question 100

Showing 81 - 100 of 154

When purchasing land, the costs for clearing, draining, filling, and grading should be charged to a Land Improvements account.

The carrying amount of an asset is the original cost less anticipated residual value.

All property, plant, and equipment must be depreciated for accounting purposes.

Which of the following would not be included in the Equipment account?

If a company wants to increase its return on assets, it should not

Beynon Corp.purchased office equipment for $20,000, with an estimated residual value of $4,000 at the end of its 8-year useful life.Assuming the double diminishing-balance method is used, the constant percentage to be applied against the carrying amount each year is

The cost of a depreciable long-lived asset is expensed

When a change in estimate is made, there is no correction of previously recorded depreciation expense.

A company purchased land for $120,000 cash; $7,000 was spent to demolish an old building on the land before construction of a new building could start; and $1,500 was received for material salvaged from the old building.The cost of the land would be recorded at

Goodwill

Carrying amount is used in determining the amount that the diminishing-balance rate is applied to.

An asset with a cost of $45,000 was sold for $9,500 and resulted in a gain of $2,000.How much was accumulated depreciation at the time of sale?

The return on assets (ROA) ratio is calculated as:

Goodwill

Mandeep Ltd.has decided to change the estimate of the useful life of an asset that has been in service for two years.Which of the following statements describes the proper way to revise a useful life estimate?

Copyrights are granted by the Canadian Intellectual Property Office

Boulder Corp.has the following assets: Buildings and Equipment (net) $12,500,000 Trade Receivables 1,600,000 Inventory 2,300,000 Land 1,500,000 The total amount reported under Property, Plant, and Equipment would be

On October 1, 2022, Benji Corporation purchased a copyright for $100,000.It is estimated that the copyright will have a useful life of 8 years with no residual value.The amount of amortization expense recognized for the calendar year 2022 would be

The difference between a depreciable asset's cost and its residual value is called

The Purpose and Use of Financial Statements

A Further Look at Financial Statements

The Accounting Information System

Accrual Accounting Concepts

Merchandising Operations

Reporting and Analyzing Inventory

Internal Control and Cash

Reporting and Analyzing Receivables

Reporting and Analyzing Liabilities

Reporting and Analyzing Shareholders Equity

Reporting and Analyzing Investments

Statement of Cash Flows

Performance Measurement

Filters