Question 1

Match the descriptions with their terms:
-Is recorded if the proceeds from the sale exceed the carrying amount of the plant asset.

Accepted Answer

A)  Gain on disposal 
B)  Loss on disposal 
C)  Trademark 
D)  Finance lease 
E)  Asset turnover
F) Average useful life
G) Goodwill
H) Agricultural assets
I) Intangible asset
J) Research costs 
A)  Gain on disposal 
B)  Loss on disposal 
C)  Trademark 
D)  Finance lease 
E)  Asset turnover
F) Average useful life
G) Goodwill
H) Agricultural assets
I) Intangible asset
J) Research costs

Question 2

Match the descriptions with their terms:
-When the carrying amount of asset is greater than the proceeds received from its sale.

Accepted Answer

A)  Gain on disposal 
B)  Loss on disposal 
C)  Trademark 
D)  Finance lease 
E)  Asset turnover
F) Average useful life
G) Goodwill
H) Agricultural assets
I) Intangible asset
J) Research costs 
A)  Gain on disposal 
B)  Loss on disposal 
C)  Trademark 
D)  Finance lease 
E)  Asset turnover
F) Average useful life
G) Goodwill
H) Agricultural assets
I) Intangible asset
J) Research costs

Question 3

Radiata Ltd purchased equipment on 1 January, 2016, at a cost of $60,000. The equipment was originally estimated to have a salvage value of $5,000 and an estimated life of 10 years. Depreciation has been recorded through 31 December, 2019, using the straight-line method. On 1 January, 2020, the estimated residual value was revised to $6,000 and the useful life was revised to a total of 8 years.
Determine Radiata Ltd's Depreciation Expense for 2020.

Accepted Answer

Calculate the carrying amount

Question 4

Match the descriptions with their terms:
-A symbol that identifies a particular enterprise or product.

Accepted Answer

A)  Gain on disposal 
B)  Loss on disposal 
C)  Trademark 
D)  Finance lease 
E)  Asset turnover
F) Average useful life
G) Goodwill
H) Agricultural assets
I) Intangible asset
J) Research costs 
A)  Gain on disposal 
B)  Loss on disposal 
C)  Trademark 
D)  Finance lease 
E)  Asset turnover
F) Average useful life
G) Goodwill
H) Agricultural assets
I) Intangible asset
J) Research costs

Question 5

Match the descriptions with their terms:
-Useful life is expressed in terms of units of production or expected use.

Accepted Answer

A)  Plant assets 
B)  Depreciation 
C)  Carrying amount 
D)  Residual value 
E)  Straight-line method
F) Units-of-production method
G) Diminishing balance method
H) Amortisation
I) Revenue expenditures
J) Capital expenditures 
A)  Plant assets 
B)  Depreciation 
C)  Carrying amount 
D)  Residual value 
E)  Straight-line method
F) Units-of-production method
G) Diminishing balance method
H) Amortisation
I) Revenue expenditures
J) Capital expenditures

Question 6

Typically the details contained in an asset register include all of the following except:

Accepted Answer

A)  date of purchase. 
B)  details of registration. 
C)  depreciation method and rate. 
D)  current selling price. 
A)  date of purchase. 
B)  details of registration. 
C)  depreciation method and rate. 
D)  current selling price.

Question 7

For each item listed, choose a code letter to indicate the allocation terminology for the item. Use the following codes for your answer:
-Land improvements

Accepted Answer

A)  Amortisation (
A)  
B)  Depreciation (
D)  
C)  None of these (N) 
A)  Amortisation (
A)  
B)  Depreciation (
D)  
C)  None of these (N)

Question 8

On July 1, 2019, Waters Kennels sells equipment for $22,000. The equipment originally cost $60,000, had an estimated 5-year life and an expected residual value of $10,000. The Accumulated depreciation account had a balance of $35,000 on 1 January, 2019, using the straight-line method. The gain or loss on disposal is:

Accepted Answer

A)  $3,000 gain. 
B)  $2,000 loss. 
C)  $3,000 loss. 
D)  $2,000 gain. 
A)  $3,000 gain. 
B)  $2,000 loss. 
C)  $3,000 loss. 
D)  $2,000 gain.

Question 9

For each item listed, choose a code letter to indicate the allocation terminology for the item. Use the following codes for your answer:
-Research and development costs

Accepted Answer

A)  Amortisation (
A)  
B)  Depreciation (
D)  
C)  None of these (N) 
A)  Amortisation (
A)  
B)  Depreciation (
D)  
C)  None of these (N)

Question 10

All leases are classified as either:

Accepted Answer

A)  capital leases or long-term leases. 
B)  capital leases or operating leases. 
C)  operating leases or finance leases. 
D)  long-term leases or current leases. 
A)  capital leases or long-term leases. 
B)  capital leases or operating leases. 
C)  operating leases or finance leases. 
D)  long-term leases or current leases.

Question 11

Complete the following statements:
-The average useful life of plant assets is calculated by dividing the average cost of plant assets by _______________.

Accepted Answer

depreciati

Question 12

A truck costing $12,000 and on which $9,000 of accumulated depreciation has been recorded was discarded as having no value. The entry to record this event would include a:

Accepted Answer

A)  gain of $3,000. 
B)  loss of $3,000. 
C)  credit to accumulated depreciation for $9,000. 
D)  credit to accumulated depreciation for $12,000. 
A)  gain of $3,000. 
B)  loss of $3,000. 
C)  credit to accumulated depreciation for $9,000. 
D)  credit to accumulated depreciation for $12,000.

Question 13

Indicate whether each of the following expenditures should be classified as:
-Interest on building construction loan

Accepted Answer

A)  land (L) 
B)  land improvements (LI) 
C)  buildings (
B)  
D)  equipment (
E)  
E)  none of these (X). 
A)  land (L) 
B)  land improvements (LI) 
C)  buildings (
B)  
D)  equipment (
E)  
E)  none of these (X).

Question 14

Select of Section of the statement of financial position where the following items are reported. Use the following code to identify your answer:
-Goodwill

Accepted Answer

A)  Property, plant and equipment(PP
E)  
B)  Intangibles(I) 
C)  Other(O) 
D)  Not on the statement of financial position(N/
A)  
A)  Property, plant and equipment(PP
E)  
B)  Intangibles(I) 
C)  Other(O) 
D)  Not on the statement of financial position(N/
A)

Question 15

Equipment with a cost of $160,000 has an estimated residual value of $10,000 and an estimated life of 4 years or 12,000 hours. It is to be depreciated by the diminishing value method with a constant depreciation rate of 37.5%. What is the amount of depreciation expense for the first full year, during which the equipment was used 3,300 hours?

Accepted Answer

A)  $60,000. 
B)  $80,000. 
C)  $56,250. 
D)  $55,500. 
A)  $60,000. 
B)  $80,000. 
C)  $56,250. 
D)  $55,500.

Question 16

Match the descriptions with their terms:
-Tangible resources that are used in operations and are not intended for resale.

Accepted Answer

A)  Plant assets 
B)  Depreciation 
C)  Carrying amount 
D)  Residual value 
E)  Straight-line method
F) Units-of-production method
G) Diminishing balance method
H) Amortisation
I) Revenue expenditures
J) Capital expenditures 
A)  Plant assets 
B)  Depreciation 
C)  Carrying amount 
D)  Residual value 
E)  Straight-line method
F) Units-of-production method
G) Diminishing balance method
H) Amortisation
I) Revenue expenditures
J) Capital expenditures

Question 17

Vickers Company use the units-of-production method in computing depreciation expense. A new plant asset is purchased for $18,000 that will produce an estimated 100,000 units over its useful life. Estimated residual value at the end of its useful life is $2,000. What is the depreciation cost per unit?

Accepted Answer

A)  $0.16. 
B)  $1.80. 
C)  $1.60. 
D)  $0.18. 
A)  $0.16. 
B)  $1.80. 
C)  $1.60. 
D)  $0.18.

Question 18

Indicate whether each of the following expenditures should be classified as:
-Architect's fee

Accepted Answer

A) land (L) 
B)  land improvements (LI) 
C)  buildings (
B)  
D)  equipment (
E)  
E)  none of these (X) 
A) land (L) 
B)  land improvements (LI) 
C)  buildings (
B)  
D)  equipment (
E)  
E)  none of these (X)

Question 19

The first step in the revaluation of an asset is to:

Accepted Answer

A)  transfer the balance of accumulated depreciation to the income statement. 
B)  record depreciation up to the date of the asset revaluation. 
C)  record the revaluation. 
D)  write-off the accumulated depreciation balance. 
A)  transfer the balance of accumulated depreciation to the income statement. 
B)  record depreciation up to the date of the asset revaluation. 
C)  record the revaluation. 
D)  write-off the accumulated depreciation balance.

Question 20

Identify the following expenditures :
-Painting the exterior of a building.

Accepted Answer

A)  capital expenditures 
B)  revenue expenditures. 
A)  capital expenditures 
B)  revenue expenditures.

Match the descriptions with their terms: -Is recorded if the proceeds from the sale exceed the carrying amount of the plant asset.

Match the descriptions with their terms: -When the carrying amount of asset is greater than the proceeds received from its sale.

Match the descriptions with their terms: -A symbol that identifies a particular enterprise or product.

Match the descriptions with their terms: -Useful life is expressed in terms of units of production or expected use.

Typically the details contained in an asset register include all of the following except:

For each item listed, choose a code letter to indicate the allocation terminology for the item. Use the following codes for your answer: -Land improvements

For each item listed, choose a code letter to indicate the allocation terminology for the item. Use the following codes for your answer: -Research and development costs

All leases are classified as either:

Complete the following statements: -The average useful life of plant assets is calculated by dividing the average cost of plant assets by _______________.

A truck costing $12,000 and on which $9,000 of accumulated depreciation has been recorded was discarded as having no value. The entry to record this event would include a:

Indicate whether each of the following expenditures should be classified as: -Interest on building construction loan

Select of Section of the statement of financial position where the following items are reported. Use the following code to identify your answer: -Goodwill

Match the descriptions with their terms: -Tangible resources that are used in operations and are not intended for resale.

Indicate whether each of the following expenditures should be classified as: -Architect's fee

The first step in the revaluation of an asset is to:

Identify the following expenditures : -Painting the exterior of a building.

An Introduction to Accounting

The Recording Process

Accrual Accounting Concepts

Inventories

Reporting and Analysing Inventory

Accounting Information Systems

Reporting and Analysing Cash and Receivables

Reporting and Analysing Liabilities

Reporting and Analysing Equity

Statement of Cash Flows

Financial Statement Analysis and Decision Making

Analysing and Integrating Gaap

Technology Concepts

Introduction to Management Accounting

Cost Accounting Systems

Costvolumeprofit Relationships

Budgeting

Filters

Exam 8: Reporting and Analysing Non-Current Assets

Match the descriptions with their terms: -Is recorded if the proceeds from the sale exceed the carrying amount of the plant asset.

Match the descriptions with their terms: -When the carrying amount of asset is greater than the proceeds received from its sale.

Match the descriptions with their terms: -A symbol that identifies a particular enterprise or product.

Match the descriptions with their terms: -Useful life is expressed in terms of units of production or expected use.

Typically the details contained in an asset register include all of the following except:

For each item listed, choose a code letter to indicate the allocation terminology for the item. Use the following codes for your answer: -Land improvements

For each item listed, choose a code letter to indicate the allocation terminology for the item. Use the following codes for your answer: -Research and development costs

All leases are classified as either:

Complete the following statements: -The average useful life of plant assets is calculated by dividing the average cost of plant assets by _______________.

A truck costing $12,000 and on which $9,000 of accumulated depreciation has been recorded was discarded as having no value. The entry to record this event would include a:

Indicate whether each of the following expenditures should be classified as: -Interest on building construction loan

Select of Section of the statement of financial position where the following items are reported. Use the following code to identify your answer: -Goodwill

Match the descriptions with their terms: -Tangible resources that are used in operations and are not intended for resale.

Indicate whether each of the following expenditures should be classified as: -Architect's fee

The first step in the revaluation of an asset is to:

Identify the following expenditures : -Painting the exterior of a building.

An Introduction to Accounting

The Recording Process

Accrual Accounting Concepts

Inventories

Reporting and Analysing Inventory

Accounting Information Systems

Reporting and Analysing Cash and Receivables

Reporting and Analysing Liabilities

Reporting and Analysing Equity

Statement of Cash Flows

Financial Statement Analysis and Decision Making

Analysing and Integrating Gaap

Technology Concepts

Introduction to Management Accounting

Cost Accounting Systems

Costvolumeprofit Relationships

Budgeting

Filters