Question 1

Identify where each of the following accounts would be reported on Coca-Cola's financial statements.
-Copyright

Accepted Answer

A) Balance Sheet-Property, Plant, and Equipment 
B) Balance Sheet-Intangible Assets 
C) Balance Sheet-Current Assets 
D) Balance Sheet-Other Assets 
E) Income Statement-Operating Section
F)Income Statement-Other Revenue and Expense Section
G)Statement of Cash Flows 
A) Balance Sheet-Property, Plant, and Equipment 
B) Balance Sheet-Intangible Assets 
C) Balance Sheet-Current Assets 
D) Balance Sheet-Other Assets 
E) Income Statement-Operating Section
F)Income Statement-Other Revenue and Expense Section
G)Statement of Cash Flows

Question 2

Current accounting standards indicate that the costs of intangible assets with an indefinite life, such as goodwill, should

Accepted Answer

A)  not be amortized. 
B)  be reported on the statement of retained earnings in the year in which acquired. 
C)  be amortized over a reasonable period of time not to exceed 40 years. 
D)  increase an expense account entirely in the year in which acquired. 
A)  not be amortized. 
B)  be reported on the statement of retained earnings in the year in which acquired. 
C)  be amortized over a reasonable period of time not to exceed 40 years. 
D)  increase an expense account entirely in the year in which acquired.

Question 3

​Cranberry Corp.constructed equipment to manufacture a new line of home products during 2016.The average balance of accumulated expenditures on the equipment during September through December 2016 was $500,000.Construction started on September 1, 2016 and was still in progress at the end of 2016.If Cranberry borrowed $500,000 for one year on September 1, 2016, to finance the construction, and the interest rate on the construction loan was 6%, how much interest can Cranberry capitalize as part of the equipment cost for 2016?

Accepted Answer

A)  $ -0- 
B)  $10,000 
C)  $20,000 
D)  $30,000 
A)  $ -0- 
B)  $10,000 
C)  $20,000 
D)  $30,000

Question 4

Identify where each of the following accounts would be reported on Coca-Cola's financial statements.
-Total amortization since inception

Accepted Answer

A) Balance Sheet-Property, Plant, and Equipment 
B) Balance Sheet-Intangible Assets 
C) Balance Sheet-Current Assets 
D) Balance Sheet-Other Assets 
E) Income Statement-Operating Section
F)Income Statement-Other Revenue and Expense Section
G)Statement of Cash Flows 
A) Balance Sheet-Property, Plant, and Equipment 
B) Balance Sheet-Intangible Assets 
C) Balance Sheet-Current Assets 
D) Balance Sheet-Other Assets 
E) Income Statement-Operating Section
F)Income Statement-Other Revenue and Expense Section
G)Statement of Cash Flows

Question 5

Fall Corp.uses plant assets that are subject to rapid decreases in value due to obsolescence and physical deterioration.Which of the following depreciation methods is most appropriate to measure the decline in the usefulness of the company's assets?

Accepted Answer

A)  Double-declining-balance 
B)  Revenue expenditure method 
C)  Straight-line 
D)  Units-of-production 
A)  Double-declining-balance 
B)  Revenue expenditure method 
C)  Straight-line 
D)  Units-of-production

Question 6

Garner, Inc.determined that it had incorrectly estimated both the estimated life and the estimated residual value of equipment that it purchased two years ago.When Garner accounts for the change in accounting estimates, it must depreciate the remaining book value of the asset over the current and future accounting periods.

Accepted Answer

A) True 
 B)False

Question 7

Research and development costs should be presented as intangible assets.

Accepted Answer

A) True 
 B)False

Question 8

Please complete the following sentences:
-
a.Accumulated amortization is used with ______________________________________.
b.Accumulated depreciation is used with ______________________________________.

Accepted Answer

a.intangible assets

Question 9

Exeter Corporation purchased a piece of equipment with a price of $80,000 on March 1, 2018.The amounts below are related to the equipment purchase.Match the items below and explain why each revenue expenditure is not capitalized.
-The company purchased a three-year liability insurance policy to cover possible damage caused by the new equipment at a cost of $6,000.

Accepted Answer

A) This item should be included as part of the cost of the equipment. 
B) This item should be considered a revenue expenditure. 
A) This item should be included as part of the cost of the equipment. 
B) This item should be considered a revenue expenditure.

Question 10

Assets classified as property, plant, and equipment are reported at

Accepted Answer

A)  each asset's original cost less depreciation since acquisition. 
B)  each asset's estimated salvage value at the balance sheet date. 
C)  the estimated depreciable cost at the balance sheet date. 
D)  each asset's estimated market value at the balance sheet date. 
A)  each asset's original cost less depreciation since acquisition. 
B)  each asset's estimated salvage value at the balance sheet date. 
C)  the estimated depreciable cost at the balance sheet date. 
D)  each asset's estimated market value at the balance sheet date.

Question 11

Land is not depreciated because it

Accepted Answer

A)  appreciates in value. 
B)  does not have an established depreciable life. 
C)  has a useful life that is limited to the period of time a company is in business. 
D)  will provide future benefits for a company for an unlimited period of time. 
A)  appreciates in value. 
B)  does not have an established depreciable life. 
C)  has a useful life that is limited to the period of time a company is in business. 
D)  will provide future benefits for a company for an unlimited period of time.

Question 12

Oakland Corp.purchased land and a building for a combined cost of $500,000.Oakland must

Accepted Answer

A)  record the $500,000 acquisition cost in an account called Land and Buildings. 
B)  depreciate the $500,000 acquisition cost, less any residual value, over the expected useful life of the building. 
C)  because part of the purchase involved land, record all of the cost in the Land account. 
D)  allocate the $500,000 acquisition cost to separate Land and Buildings accounts based on their respective fair market values. 
A)  record the $500,000 acquisition cost in an account called Land and Buildings. 
B)  depreciate the $500,000 acquisition cost, less any residual value, over the expected useful life of the building. 
C)  because part of the purchase involved land, record all of the cost in the Land account. 
D)  allocate the $500,000 acquisition cost to separate Land and Buildings accounts based on their respective fair market values.

Question 13

Identify where each of the following accounts would be reported on Coca-Cola's financial statements.
-Research and development costs

Accepted Answer

A) Balance Sheet-Property, Plant, and Equipment 
B) Balance Sheet-Intangible Assets 
C) Balance Sheet-Current Assets 
D) Balance Sheet-Other Assets 
E) Income Statement-Operating Section
F)Income Statement-Other Revenue and Expense Section
G)Statement of Cash Flows 
A) Balance Sheet-Property, Plant, and Equipment 
B) Balance Sheet-Intangible Assets 
C) Balance Sheet-Current Assets 
D) Balance Sheet-Other Assets 
E) Income Statement-Operating Section
F)Income Statement-Other Revenue and Expense Section
G)Statement of Cash Flows

Question 14

Biglersville Corp.purchased equipment at the beginning of 2016 for $16,000.Biglersville Corp.decided to depreciate the equipment over a 5-year period using the straight-line method.Biglersville Corp.estimated the equipment's residual value at $1,000.The estimated fair market value at the end of 2016 was $15,000.Which of the following statements is correct concerning Biglersville Corp.'s financial statements at December 31, 2016?

Accepted Answer

A)  The book value of the equipment is $30,000. 
B)  The book value of the equipment is $13,000. 
C)  The total accumulated depreciation is $1,000. 
D)  The equipment will be reported on the balance sheet at it fair market value of $15,000. 
A)  The book value of the equipment is $30,000. 
B)  The book value of the equipment is $13,000. 
C)  The total accumulated depreciation is $1,000. 
D)  The equipment will be reported on the balance sheet at it fair market value of $15,000.

Question 15

On January 1, 2016, Humansville Company purchased a piece of equipment with a list price of $80,000.The following amounts were related to the equipment purchase:
• Terms of the purchase were 2/10, net 30.Humansville paid for the purchase on January 8.
• Freight costs of $1,250 were incurred.
• A state agency required that a pollution control device be installed on the equipment at a cost of $3,300.
• During installation, the equipment was damaged and repair costs of $4,200 were incurred.
• Architect's fees of $6,100 were paid to redesign the work space to accommodate the new equipment.
• Humansville purchased liability insurance to cover possible damage to the asset.The three-year policy cost $8,700.
• Humansville financed the purchase with a bank loan.Interest of $4,600 was paid on the loan during 2016.
Required:
Determine the acquisition cost of the equipment.

Accepted Answer

The acquisition cost of the asset should

Question 16

Norwood, Inc.purchased a crane at a cost of $80,000.The crane has an estimated residual value of $5,000 and an estimated life of 8 years, or 12,500 hours of operation.The crane was purchased on January 1, 2016 and was used 2,700 hours in 2016 and 2,600 hours in 2017.
​
-Refer to the information about Norwood, Inc. What amount will Norwood, Inc.report as depreciation expense over the 8-year life of the equipment?

Accepted Answer

A)  $60,000 
B)  $72,000 
C)  $75,000 
D)  $80,000 
A)  $60,000 
B)  $72,000 
C)  $75,000 
D)  $80,000

Question 17

The FASB standards do not have a specific rule that requires residual value and asset life to be reviewed annually for property, plant, and equipment.

Accepted Answer

A) True 
 B)False

Question 18

For each of the following sentences , select the word or group of words that best completes the statement.
-______________________________ is(are) a cost(s) that improves an operating asset and is (are) added to the asset account.

Accepted Answer

A) Patent 
B) Copyright 
C) Goodwill 
D) Revenue expenditure 
E) Natural resources
F)Research and development costs
G)Trademark
H)Capital expenditure 
A) Patent 
B) Copyright 
C) Goodwill 
D) Revenue expenditure 
E) Natural resources
F)Research and development costs
G)Trademark
H)Capital expenditure

Question 19

______________________________ depreciation is the GAAP depreciation method considered to be "accelerated" in nature.

Accepted Answer

Double dec

Question 20

Shidan Apartments purchased an apartment building to rent to university students on November 18, 2016.The following costs were incurred during 2016, before the tenants moved in: $$\begin{array} { l r } 
\text { Purchase price of the building } & \$ 220,000 \
\text { Purchase price of the land } & 100,000 \
\text { Transfer taxes } & 10,000 \
\text { Interest incurred on the mortgage loan to purchase } & 4,000 \
\text { Attorney and real estate agent's fees } & 15,000 \
\text { Repave the parking lot } & 6,000
\end{array}$$ ? How much will Shidan Apartments record as an asset?

Accepted Answer

A)  $320,000 
B)  $345,000 
C)  $351,000 
D)  $355,000 
A)  $320,000 
B)  $345,000 
C)  $351,000 
D)  $355,000

Identify where each of the following accounts would be reported on Coca-Cola's financial statements. -Copyright

Current accounting standards indicate that the costs of intangible assets with an indefinite life, such as goodwill, should

Identify where each of the following accounts would be reported on Coca-Cola's financial statements. -Total amortization since inception

Fall Corp.uses plant assets that are subject to rapid decreases in value due to obsolescence and physical deterioration.Which of the following depreciation methods is most appropriate to measure the decline in the usefulness of the company's assets?

Research and development costs should be presented as intangible assets.

Please complete the following sentences: - a.Accumulated amortization is used with . b.Accumulated depreciation is used with .

Assets classified as property, plant, and equipment are reported at

Land is not depreciated because it

Oakland Corp.purchased land and a building for a combined cost of $500,000.Oakland must

Identify where each of the following accounts would be reported on Coca-Cola's financial statements. -Research and development costs

The FASB standards do not have a specific rule that requires residual value and asset life to be reviewed annually for property, plant, and equipment.

For each of the following sentences , select the word or group of words that best completes the statement. -______________________________ is(are) a cost(s) that improves an operating asset and is (are) added to the asset account.

______________________________ depreciation is the GAAP depreciation method considered to be "accelerated" in nature.

Accounting As a Form of Communication

Financial Statements and the Annual Report

Processing Accounting Information

Income Measurement and Accrual Accounting

Inventories and Cost of Goods Sold

Cash and Internal Control

Receivables and Investments

Current Liabilities, Contingencies, and the True Value of Money

Long-Term Liabilities

Stockholders Equity

The Statement of Cash Flows

Financial Statement Analysis

Exploring Accounting Standards and Differences around the World

Filters

Exam 8: Operating Assets: Property, Plant and Equipment, and Intangibles

Identify where each of the following accounts would be reported on Coca-Cola's financial statements. -Copyright

Current accounting standards indicate that the costs of intangible assets with an indefinite life, such as goodwill, should

Identify where each of the following accounts would be reported on Coca-Cola's financial statements. -Total amortization since inception

Fall Corp.uses plant assets that are subject to rapid decreases in value due to obsolescence and physical deterioration.Which of the following depreciation methods is most appropriate to measure the decline in the usefulness of the company's assets?

Research and development costs should be presented as intangible assets.

Please complete the following sentences: - a.Accumulated amortization is used with ______________________________________. b.Accumulated depreciation is used with ______________________________________.

Assets classified as property, plant, and equipment are reported at

Land is not depreciated because it

Oakland Corp.purchased land and a building for a combined cost of $500,000.Oakland must

Identify where each of the following accounts would be reported on Coca-Cola's financial statements. -Research and development costs

The FASB standards do not have a specific rule that requires residual value and asset life to be reviewed annually for property, plant, and equipment.

For each of the following sentences , select the word or group of words that best completes the statement. -______________________________ is(are) a cost(s) that improves an operating asset and is (are) added to the asset account.

______________________________ depreciation is the GAAP depreciation method considered to be "accelerated" in nature.

Accounting As a Form of Communication

Financial Statements and the Annual Report

Processing Accounting Information

Income Measurement and Accrual Accounting

Inventories and Cost of Goods Sold

Cash and Internal Control

Receivables and Investments

Current Liabilities, Contingencies, and the True Value of Money

Long-Term Liabilities

Stockholders Equity

The Statement of Cash Flows

Financial Statement Analysis

Exploring Accounting Standards and Differences around the World

Filters

Please complete the following sentences: - a.Accumulated amortization is used with . b.Accumulated depreciation is used with .