Exam 10: Noncurrent Assets

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Equipment with a cost of $160 000 has an estimated residual value of $10 000 and an estimated useful life of four years. Using the straight-line method, what is the amount of depreciation for the first full year?

(Multiple Choice)

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Question 41

Equipment with a cost of $160 000 has an estimated residual value of $10 000 and an estimated useful life of four years. The equipment is to be depreciated by the reducing balance method (at twice the straight-line rate). What is the amount of depreciation for the first full year?

(Multiple Choice)

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Question 42

Which of the following should NOT be included in the cost of a new machine?

(Multiple Choice)

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Question 43

A company purchases equipment on 1 January 2016. The following costs are incurred: The equipment has an estimated life of five years and no salvage value. What is the depreciation expense in 2016 if the straight-line method is used?

(Multiple Choice)

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Question 44

Which of the following is NOT depreciated under GAAP?

(Multiple Choice)

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Question 45

Creep Ltd purchased a machine for $100 000 on 1 January 2016. It has an estimated useful life of five years. Creep Ltd's financial period ends on 31 December. The machine was depreciated using the reducing balance method at 60 per cent. What was the balance of accumulated depreciation at 31 December 2018?

(Multiple Choice)

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Question 46

Which method can result in annual depreciation expense going up and down from period to period?

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Question 47

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Equipment with a cost of $160 000 has an estimated residual value of $10 000 and an estimated useful life of four years. Using the straight-line method, what is the amount of depreciation for the first full year?

Equipment with a cost of $160 000 has an estimated residual value of $10 000 and an estimated useful life of four years. The equipment is to be depreciated by the reducing balance method (at twice the straight-line rate). What is the amount of depreciation for the first full year?

Which of the following should NOT be included in the cost of a new machine?

A company purchases equipment on 1 January 2016. The following costs are incurred: The equipment has an estimated life of five years and no salvage value. What is the depreciation expense in 2016 if the straight-line method is used?

Which of the following is NOT depreciated under GAAP?

Which method can result in annual depreciation expense going up and down from period to period?

Introduction to Financial Accounting

Measuring and Evaluating Financial Position and Financial Performance

The Double-Entry System

Record-Keeping

Accrual Accounting Adjustments

Financial Reporting Principles, Accounting Standards and Auditing

Internal Control and Cash

Accounts Receivable and Further Record-Keeping

Inventory

Liabilities

Completing the Balance Sheet

Revenue and Expense Recognition: Additional Concepts

The Statement of Cash Flows

Financial Statement Analysis

Accounting Policy Choices

Sustainability Reporting

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