Question 1

A truck costing $56,000 has accumulated depreciation of $50,000.The truck is scrapped for $500.The journal entry to record this transaction is to:

Accepted Answer

A) debit Cash for $500,debit Truck for $50,000,debit Loss on Disposal for $5,500 and credit Accumulated Depreciation - Truck for $56,000. 
B) debit Cash for $500,debit Accumulated Depreciation - Truck for $50,000,debit Loss on Disposal for $5,500 and credit Truck for $56,000. 
C) debit Accumulated Depreciation - Truck for $50,000,debit Loss on Disposal $6,000,and credit Truck for $56,000. 
D) debit Cash for $500,debit Loss on Disposal for $55,500 and credit Truck for $56,000. 
A) debit Cash for $500,debit Truck for $50,000,debit Loss on Disposal for $5,500 and credit Accumulated Depreciation - Truck for $56,000. 
B) debit Cash for $500,debit Accumulated Depreciation - Truck for $50,000,debit Loss on Disposal for $5,500 and credit Truck for $56,000. 
C) debit Accumulated Depreciation - Truck for $50,000,debit Loss on Disposal $6,000,and credit Truck for $56,000. 
D) debit Cash for $500,debit Loss on Disposal for $55,500 and credit Truck for $56,000.

Question 2

Which of the following would NOT be considered part of the cost of machinery and equipment?

Accepted Answer

A) Repairs and maintenance after start-up 
B) Delivery charges 
C) Installation costs 
D) In-transit insurance costs 
A) Repairs and maintenance after start-up 
B) Delivery charges 
C) Installation costs 
D) In-transit insurance costs

Question 3

Which of the following would be considered a fixed asset?

Accepted Answer

A) land 
B) patents 
C) timber 
D) both A and C are fixed assets 
A) land 
B) patents 
C) timber 
D) both A and C are fixed assets

Question 4

Which of the following would be debited as part of what you got in a transaction involving an exchange of assets?

Accepted Answer

A) Old machine 
B) Equipment (new) 
C) Accumulated Depreciation 
D) Gain on exchange 
A) Old machine 
B) Equipment (new) 
C) Accumulated Depreciation 
D) Gain on exchange

Question 5

If an asset is being sold or exchanged,the gain or loss is always computed by comparing the:

Accepted Answer

A) market value and book value. 
B) market value and salvage value. 
C) book value and salvage value. 
D) market value and cost. 
A) market value and book value. 
B) market value and salvage value. 
C) book value and salvage value. 
D) market value and cost.

Question 6

For which of the following securities are any increases or decreases in value reported as a separate change in Stockholders' Equity for the period?

Accepted Answer

A) Trading securities 
B) Available-for sale securities 
C) Held-to-maturity securities 
D) Trading and held-to-maturity securities 
A) Trading securities 
B) Available-for sale securities 
C) Held-to-maturity securities 
D) Trading and held-to-maturity securities

Question 7

If the amount extracted from a coal mine was different every year for four years,you would:

Accepted Answer

A) recompute the depletion expense rate per unit each year. 
B) use the same depletion expense rate per unit each year. 
C) debit Depletion expense for the same amount each year. 
D) credit Accumulated depletion-coal mine for the same amount each year. 
A) recompute the depletion expense rate per unit each year. 
B) use the same depletion expense rate per unit each year. 
C) debit Depletion expense for the same amount each year. 
D) credit Accumulated depletion-coal mine for the same amount each year.

Question 8

Which of the following marketable securities are reported at cost on the Balance Sheet date?

Accepted Answer

A) Trading securities 
B) Available-for sale securities 
C) Held-to-maturity securities 
D) Trading and held-to-maturity securities 
A) Trading securities 
B) Available-for sale securities 
C) Held-to-maturity securities 
D) Trading and held-to-maturity securities

Question 9

Assets that are NOT expected to provide benefits for more than 12 months after the presentation of the financial statements are called:

Accepted Answer

A) property,plant,and equipment. 
B) long-term assets. 
C) natural resources. 
D) current assets. 
A) property,plant,and equipment. 
B) long-term assets. 
C) natural resources. 
D) current assets.

Question 10

Patents and copyrights can be seen,held or touched.

Accepted Answer

A) True 
 B)False

Question 11

Computing depletion expense is much like computing depreciation under the straight-line method.

Accepted Answer

A) True 
 B)False

Question 12

Instead of using an accumulated amortization account similar to accumulated depreciation,the expense of amortization is directly credited to the intangible asset itself.

Accepted Answer

A) True 
 B)False

Question 13

Betterments are items that add to the life of the asset.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following would NOT be considered as part of the cost of a constructed building?

Accepted Answer

A) Building permit fees 
B) Contractor charges 
C) Realtor commissions 
D) Architectural fees 
A) Building permit fees 
B) Contractor charges 
C) Realtor commissions 
D) Architectural fees

Question 15

After 4 years,a machine had an accumulated depreciation of $38,000.Originally,the machine had an anticipated life of 8 years and a salvage value of $5,000.If the current book value after 4 years is $43,000 and the machine has only 2 years of useable life left,how much will be depreciated in Year 5 and in Year 6 using the straight-line method of depreciation,and assuming the salvage value is still $5,000?

Accepted Answer

A) $21,500 each year 
B) $9,500 each year 
C) $19,000 each year 
D) $10,125 each year 
A) $21,500 each year 
B) $9,500 each year 
C) $19,000 each year 
D) $10,125 each year

Question 16

A truck costing $56,000 has accumulated depreciation of $50,000.The truck is scrapped for $0.The journal entry to record this transaction is to:

Accepted Answer

A) debit Truck for $50,000,debit Loss on Disposal for $6,000 and credit Accumulated Depreciation - Truck for $56,000. 
B) debit Accumulated Depreciation - Truck for $50,000,and credit Truck for $50,000. 
C) debit Accumulated Depreciation - Truck for $50,000,debit Loss on Disposal $6,000,and credit Truck for $56,000. 
D) debit Truck for $56,000,credit Accumulated Depreciation - Truck for $50,000 and credit Gain on Disposal for $6,000. 
A) debit Truck for $50,000,debit Loss on Disposal for $6,000 and credit Accumulated Depreciation - Truck for $56,000. 
B) debit Accumulated Depreciation - Truck for $50,000,and credit Truck for $50,000. 
C) debit Accumulated Depreciation - Truck for $50,000,debit Loss on Disposal $6,000,and credit Truck for $56,000. 
D) debit Truck for $56,000,credit Accumulated Depreciation - Truck for $50,000 and credit Gain on Disposal for $6,000.

Question 17

Juarez Mining purchased a vein of coal ore for $3,500,000.It is estimated that 25,000,000 tons of ore are available to be extracted.The estimated depletion rate for each ton of ore (rounded to the nearest cent)is:

Accepted Answer

A) $0.13. 
B) $0.14. 
C) $0.15. 
D) $1.40. 
A) $0.13. 
B) $0.14. 
C) $0.15. 
D) $1.40.

Question 18

The footnotes to the financial statements will include a description of the intangible asset and its estimated useful life.

Accepted Answer

A) True 
 B)False

Question 19

If an asset produces more revenue in its early years,the depreciation method best suited for this asset would be the:

Accepted Answer

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

Question 20

A repair that extends the useful life of an asset would be considered a(n):

Accepted Answer

A) extraordinary repair. 
B) ordinary repair. 
C) betterment. 
D) capital expense. 
A) extraordinary repair. 
B) ordinary repair. 
C) betterment. 
D) capital expense.

A truck costing $56,000 has accumulated depreciation of $50,000.The truck is scrapped for $500.The journal entry to record this transaction is to:

Which of the following would NOT be considered part of the cost of machinery and equipment?

Which of the following would be considered a fixed asset?

Which of the following would be debited as part of what you got in a transaction involving an exchange of assets?

If an asset is being sold or exchanged,the gain or loss is always computed by comparing the:

For which of the following securities are any increases or decreases in value reported as a separate change in Stockholders' Equity for the period?

If the amount extracted from a coal mine was different every year for four years,you would:

Which of the following marketable securities are reported at cost on the Balance Sheet date?

Assets that are NOT expected to provide benefits for more than 12 months after the presentation of the financial statements are called:

Patents and copyrights can be seen,held or touched.

Computing depletion expense is much like computing depreciation under the straight-line method.

Instead of using an accumulated amortization account similar to accumulated depreciation,the expense of amortization is directly credited to the intangible asset itself.

Betterments are items that add to the life of the asset.

Which of the following would NOT be considered as part of the cost of a constructed building?

A truck costing $56,000 has accumulated depreciation of $50,000.The truck is scrapped for $0.The journal entry to record this transaction is to:

Juarez Mining purchased a vein of coal ore for $3,500,000.It is estimated that 25,000,000 tons of ore are available to be extracted.The estimated depletion rate for each ton of ore (rounded to the nearest cent)is:

The footnotes to the financial statements will include a description of the intangible asset and its estimated useful life.

If an asset produces more revenue in its early years,the depreciation method best suited for this asset would be the:

A repair that extends the useful life of an asset would be considered a(n):

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

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Exam 8: Long-Term and Other Assets

A truck costing $56,000 has accumulated depreciation of $50,000.The truck is scrapped for $500.The journal entry to record this transaction is to:

Which of the following would NOT be considered part of the cost of machinery and equipment?

Which of the following would be considered a fixed asset?

Which of the following would be debited as part of what you got in a transaction involving an exchange of assets?

If an asset is being sold or exchanged,the gain or loss is always computed by comparing the:

For which of the following securities are any increases or decreases in value reported as a separate change in Stockholders' Equity for the period?

If the amount extracted from a coal mine was different every year for four years,you would:

Which of the following marketable securities are reported at cost on the Balance Sheet date?

Assets that are NOT expected to provide benefits for more than 12 months after the presentation of the financial statements are called:

Patents and copyrights can be seen,held or touched.

Computing depletion expense is much like computing depreciation under the straight-line method.

Instead of using an accumulated amortization account similar to accumulated depreciation,the expense of amortization is directly credited to the intangible asset itself.

Betterments are items that add to the life of the asset.

Which of the following would NOT be considered as part of the cost of a constructed building?

A truck costing $56,000 has accumulated depreciation of $50,000.The truck is scrapped for $0.The journal entry to record this transaction is to:

Juarez Mining purchased a vein of coal ore for $3,500,000.It is estimated that 25,000,000 tons of ore are available to be extracted.The estimated depletion rate for each ton of ore (rounded to the nearest cent)is:

The footnotes to the financial statements will include a description of the intangible asset and its estimated useful life.

If an asset produces more revenue in its early years,the depreciation method best suited for this asset would be the:

A repair that extends the useful life of an asset would be considered a(n):

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