Question 1

Equity securities which management intends to hold for less than one year would be considered other long-term assets.

Accepted Answer

A) True 
 B)False

Question 2

Investments in debt securities,such as bonds,may be classified as either current or long-term assets.

Accepted Answer

A) True 
 B)False

Question 3

Available-for-sale securities are reported at their current market value,and any increases or decreases in market value are reported as part of net income.

Accepted Answer

A) True 
 B)False

Question 4

As with natural resources,the residual value of most intangibles is determined by the accounting department.

Accepted Answer

A) True 
 B)False

Question 5

In accounting,what is the meaning of capitalized?

Accepted Answer

A) Capitalized means that a liability account is credited (increased)for the cost of an asset. 
B) Capitalized means that an asset account is debited (increased)for the cost of an asset. 
C) Capitalized means that the cost of an asset is recorded as a debit (increase)to expense. 
D) Capitalized means that a given city has been selected as a government center. 
A) Capitalized means that a liability account is credited (increased)for the cost of an asset. 
B) Capitalized means that an asset account is debited (increased)for the cost of an asset. 
C) Capitalized means that the cost of an asset is recorded as a debit (increase)to expense. 
D) Capitalized means that a given city has been selected as a government center.

Question 6

Items such as minerals are considered natural resources.

Accepted Answer

A) True 
 B)False

Question 7

The cost of furniture and fixtures,such as desks,chairs and other items,includes its basic cost plus all other costs to ready the asset for its intended use.

Accepted Answer

A) True 
 B)False

Question 8

Depreciation is based upon cost,useful life and salvage value.

Accepted Answer

A) True 
 B)False

Question 9

Plant assets can be called fixed assets,physical assets,or tangible assets.

Accepted Answer

A) True 
 B)False

Question 10

Whether a building is purchased or constructed,the same items are used to compute the price of the building.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following would be considered a natural resource?

Accepted Answer

A) Corn 
B) Livestock 
C) Timber 
D) Wheat 
A) Corn 
B) Livestock 
C) Timber 
D) Wheat

Question 12

Aspen Ore purchased a vein of coal ore for $5,250,000.It is estimated that 30,000,000 tons of ore are available to be extracted.The estimated depletion expense for this year's extraction of 2,750,000 tons of ore (rounded to the nearest dollar)is:

Accepted Answer

A) $525,000. 
B) $504,167. 
C) $481,250. 
D) $458,333. 
A) $525,000. 
B) $504,167. 
C) $481,250. 
D) $458,333.

Question 13

Neither land nor land improvements are depreciated.

Accepted Answer

A) True 
 B)False

Question 14

Equipment costing $118,000 has accumulated depreciation of $92,000.The equipment is a trade-in for new equipment costing $187,000.If the trade-in value received for the old equipment is $20,000,the journal entry to record this transaction is to:

Accepted Answer

A) debit Equipment (New)for $187,000,and credit Cash for $187,000. 
B) debit Equipment (New)for $187,000,debit Accumulated Depreciation - Equipment for $92,000,credit Equipment (Old)for $118,000 and credit Cash for $161,000. 
C) debit Equipment (New)for $187,000,debit Accumulated Depreciation - Equipment for $92,000,debit Loss on Exchange of Assets for $26,000,credit Equipment (Old)for $118,000,credit Cash for $187,000. 
D) debit Equipment (New)for $187,000,debit Accumulated Depreciation - Equipment for $92,000,debit Loss on Exchange of Assets for $6,000,credit Equipment (Old)for $118,000 and credit Cash for $167,000. 
A) debit Equipment (New)for $187,000,and credit Cash for $187,000. 
B) debit Equipment (New)for $187,000,debit Accumulated Depreciation - Equipment for $92,000,credit Equipment (Old)for $118,000 and credit Cash for $161,000. 
C) debit Equipment (New)for $187,000,debit Accumulated Depreciation - Equipment for $92,000,debit Loss on Exchange of Assets for $26,000,credit Equipment (Old)for $118,000,credit Cash for $187,000. 
D) debit Equipment (New)for $187,000,debit Accumulated Depreciation - Equipment for $92,000,debit Loss on Exchange of Assets for $6,000,credit Equipment (Old)for $118,000 and credit Cash for $167,000.

Question 15

Which of the following would be included in the cost of a constructed building?

Accepted Answer

A) Purchase price of the building 
B) Payments for material,labor,and overhead 
C) Survey and legal fees 
D) Realtor commissions 
A) Purchase price of the building 
B) Payments for material,labor,and overhead 
C) Survey and legal fees 
D) Realtor commissions

Question 16

Information needed to compute a depletion charge per unit includes the:

Accepted Answer

A) estimated total amount of resources available for removal. 
B) amount of resources removed during the period. 
C) cumulative amount of resources removed. 
D) amount of resources sold during the period. 
A) estimated total amount of resources available for removal. 
B) amount of resources removed during the period. 
C) cumulative amount of resources removed. 
D) amount of resources sold during the period.

Question 17

If an asset generates revenue evenly over time,the depreciation method best suited for this asset would be the:

Accepted Answer

A) double-declining balance method. 
B) straight-line method. 
C) units-of-production method. 
D) expense method. 
A) double-declining balance method. 
B) straight-line method. 
C) units-of-production method. 
D) expense method.

Question 18

A piece of equipment that was originally purchased for $33,000,had accumulated depreciation of $25,000,and was sold for $8,000 would recognize a gain of $1,000.

Accepted Answer

A) True 
 B)False

Question 19

Other than land,long-term assets that are capitalized are:

Accepted Answer

A) expensed in the year of purchase. 
B) depreciated over the life of the asset. 
C) recorded at market value. 
D) recorded at net realizable value. 
A) expensed in the year of purchase. 
B) depreciated over the life of the asset. 
C) recorded at market value. 
D) recorded at net realizable value.

Question 20

Assets that CANNOT be seen,touched,or held are called:

Accepted Answer

A) intangible assets. 
B) natural resources. 
C) plant assets. 
D) tangible assets. 
A) intangible assets. 
B) natural resources. 
C) plant assets. 
D) tangible assets.

Equity securities which management intends to hold for less than one year would be considered other long-term assets.

Investments in debt securities,such as bonds,may be classified as either current or long-term assets.

Available-for-sale securities are reported at their current market value,and any increases or decreases in market value are reported as part of net income.

As with natural resources,the residual value of most intangibles is determined by the accounting department.

In accounting,what is the meaning of capitalized?

Items such as minerals are considered natural resources.

The cost of furniture and fixtures,such as desks,chairs and other items,includes its basic cost plus all other costs to ready the asset for its intended use.

Depreciation is based upon cost,useful life and salvage value.

Plant assets can be called fixed assets,physical assets,or tangible assets.

Whether a building is purchased or constructed,the same items are used to compute the price of the building.

Which of the following would be considered a natural resource?

Aspen Ore purchased a vein of coal ore for $5,250,000.It is estimated that 30,000,000 tons of ore are available to be extracted.The estimated depletion expense for this year's extraction of 2,750,000 tons of ore (rounded to the nearest dollar)is:

Neither land nor land improvements are depreciated.

Equipment costing $118,000 has accumulated depreciation of $92,000.The equipment is a trade-in for new equipment costing $187,000.If the trade-in value received for the old equipment is $20,000,the journal entry to record this transaction is to:

Which of the following would be included in the cost of a constructed building?

Information needed to compute a depletion charge per unit includes the:

If an asset generates revenue evenly over time,the depreciation method best suited for this asset would be the:

A piece of equipment that was originally purchased for $33,000,had accumulated depreciation of $25,000,and was sold for $8,000 would recognize a gain of $1,000.

Other than land,long-term assets that are capitalized are:

Assets that CANNOT be seen,touched,or held are called:

Business, Accounting, and You

Analyzing and Recording Business Transactions

Adjusting and Closing Entries

Accounting for a Merchandising Business

Inventory

The Challenges of Accounting: Standards, internal Control, audits, fraud, and Ethics

Cash and Receivables

Current Liabilities and Long-Term Debt

Corporations: Paid-In Capital and Retained Earnings

The Statement of Cash Flows

Financial Statement Analysis

Filters

Exam 8: Long-Term and Other Assets

Equity securities which management intends to hold for less than one year would be considered other long-term assets.

Investments in debt securities,such as bonds,may be classified as either current or long-term assets.

Available-for-sale securities are reported at their current market value,and any increases or decreases in market value are reported as part of net income.

As with natural resources,the residual value of most intangibles is determined by the accounting department.

In accounting,what is the meaning of capitalized?

Items such as minerals are considered natural resources.

The cost of furniture and fixtures,such as desks,chairs and other items,includes its basic cost plus all other costs to ready the asset for its intended use.

Depreciation is based upon cost,useful life and salvage value.

Plant assets can be called fixed assets,physical assets,or tangible assets.

Whether a building is purchased or constructed,the same items are used to compute the price of the building.

Which of the following would be considered a natural resource?

Aspen Ore purchased a vein of coal ore for $5,250,000.It is estimated that 30,000,000 tons of ore are available to be extracted.The estimated depletion expense for this year's extraction of 2,750,000 tons of ore (rounded to the nearest dollar)is:

Neither land nor land improvements are depreciated.

Equipment costing $118,000 has accumulated depreciation of $92,000.The equipment is a trade-in for new equipment costing $187,000.If the trade-in value received for the old equipment is $20,000,the journal entry to record this transaction is to:

Which of the following would be included in the cost of a constructed building?

Information needed to compute a depletion charge per unit includes the:

If an asset generates revenue evenly over time,the depreciation method best suited for this asset would be the:

A piece of equipment that was originally purchased for $33,000,had accumulated depreciation of $25,000,and was sold for $8,000 would recognize a gain of $1,000.

Other than land,long-term assets that are capitalized are:

Assets that CANNOT be seen,touched,or held are called:

Business, Accounting, and You

Analyzing and Recording Business Transactions

Adjusting and Closing Entries

Accounting for a Merchandising Business

Inventory

The Challenges of Accounting: Standards, internal Control, audits, fraud, and Ethics

Cash and Receivables

Current Liabilities and Long-Term Debt

Corporations: Paid-In Capital and Retained Earnings

The Statement of Cash Flows

Financial Statement Analysis

Filters