Question 1

Buildings,vehicles,and desks are:

Accepted Answer

A) amortized. 
B) depleted. 
C) depreciated. 
D) expensed. 
A) amortized. 
B) depleted. 
C) depreciated. 
D) expensed.

Question 2

Which type of marketable securities do NOT report increases or decreases in value on the Income Statement?

Accepted Answer

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

Question 3

Which of the following would NOT be considered part of the cost of the land?

Accepted Answer

A) Survey and legal fees 
B) Realtor commissions 
C) Paving 
D) Unpaid property taxes on the land 
A) Survey and legal fees 
B) Realtor commissions 
C) Paving 
D) Unpaid property taxes on the land

Question 4

Replacing an engine on a delivery truck would be considered a betterment.

Accepted Answer

A) True 
 B)False

Question 5

Which intangible asset is recorded only when an acquiring company purchases another company?

Accepted Answer

A) Franchise 
B) Goodwill 
C) Brand name 
D) Trademark 
A) Franchise 
B) Goodwill 
C) Brand name 
D) Trademark

Question 6

Properties whose physical substance consists of natural resources that are consumed in the operation of a business are called:

Accepted Answer

A) depreciable assets. 
B) depletable assets. 
C) amortizable assets. 
D) intangible assets. 
A) depreciable assets. 
B) depletable assets. 
C) amortizable assets. 
D) intangible assets.

Question 7

Capitol Construction Company made a basket purchase of three items.Item X was appraised at $35,000;item Y was appraised at $55,000 and item Z was appraised at $60,000.The purchase price was $125,000.The amount at which item Z should be recorded (rounded to the nearest dollar)is:

Accepted Answer

A) $72,000. 
B) $83,300. 
C) $50,000. 
D) $29,167. 
A) $72,000. 
B) $83,300. 
C) $50,000. 
D) $29,167.

Question 8

Levi's would be an example of a:

Accepted Answer

A) trademark. 
B) copyright. 
C) brand name. 
D) patent. 
A) trademark. 
B) copyright. 
C) brand name. 
D) patent.

Question 9

Which of the following would be considered part of land improvements?

Accepted Answer

A) Removal of unwanted building on the land 
B) Title transfer fees 
C) Paving of the parking lot 
D) Surveying fees 
A) Removal of unwanted building on the land 
B) Title transfer fees 
C) Paving of the parking lot 
D) Surveying fees

Question 10

Adding on 30 rooms to an existing hotel would be considered a betterment because the addition added to the hotel's capacity.

Accepted Answer

A) True 
 B)False

Question 11

Copyrights to protect various forms of media are conveyed by the federal government for a period of:

Accepted Answer

A) 70 years beyond the author's life. 
B) 50 years beyond the author's life. 
C) 20 years. 
D) a useful life that is agreed upon by the company. 
A) 70 years beyond the author's life. 
B) 50 years beyond the author's life. 
C) 20 years. 
D) a useful life that is agreed upon by the company.

Question 12

The depreciation method often used for income tax purposes is 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 13

Coal,oil,and timber are:

Accepted Answer

A) amortized. 
B) depleted. 
C) depreciated. 
D) expensed. 
A) amortized. 
B) depleted. 
C) depreciated. 
D) expensed.

Question 14

Leo's Lawncare purchased equipment on January 1.The cost was $15,000,and the equipment had a residual value of $4,000.The equipment was given a useful life of 7 years.After the end of two years,it was determined that the equipment would be obsolete in 3 more years and the residual value would still be $4,000.What will be the depreciation under the straight-line method to the nearest dollar be for the third year?

Accepted Answer

A) $1,571 
B) $2,619 
C) $3,142 
D) $7,857 
A) $1,571 
B) $2,619 
C) $3,142 
D) $7,857

Question 15

A company should choose a depreciation method that most closely matches the cost of the asset against the future revenues it generates.

Accepted Answer

A) True 
 B)False

Question 16

Sydney's Siding made a basket purchase involving four assets.Their market values were A: $45,000;B: $37,500;C: $41,000;and D: $53,000.The price Sydney's paid for the four assets was $160,000.What percentage of the $160,000 price would be allocated to asset C to the nearest one-tenth of a percent?

Accepted Answer

A) 30.0% 
B) 25.5% 
C) 23.2% 
D) 21.2% 
A) 30.0% 
B) 25.5% 
C) 23.2% 
D) 21.2%

Question 17

Which of the following would be considered part of the cost of a printing press?

Accepted Answer

A) The medical fees for a worker who was injured while installing the press 
B) The cost of a test run to make sure the press worked properly 
C) Both A and B are part of the cost of the printing press. 
D) Neither A nor B are part of the cost of the printing press. 
A) The medical fees for a worker who was injured while installing the press 
B) The cost of a test run to make sure the press worked properly 
C) Both A and B are part of the cost of the printing press. 
D) Neither A nor B are part of the cost of the printing press.

Question 18

GAAP does not allow property,plant,and equipment to be shown at net book value on the Balance Sheet.

Accepted Answer

A) True 
 B)False

Question 19

Amortization is computed over the useful life of the intangible asset using the double-declining-balance method.

Accepted Answer

A) True 
 B)False

Question 20

Trading securities are shown as long-term assets on the Balance Sheet.

Accepted Answer

A) True 
 B)False

Buildings,vehicles,and desks are:

Which type of marketable securities do NOT report increases or decreases in value on the Income Statement?

Which of the following would NOT be considered part of the cost of the land?

Replacing an engine on a delivery truck would be considered a betterment.

Which intangible asset is recorded only when an acquiring company purchases another company?

Properties whose physical substance consists of natural resources that are consumed in the operation of a business are called:

Capitol Construction Company made a basket purchase of three items.Item X was appraised at $35,000;item Y was appraised at $55,000 and item Z was appraised at $60,000.The purchase price was $125,000.The amount at which item Z should be recorded (rounded to the nearest dollar)is:

Levi's would be an example of a:

Which of the following would be considered part of land improvements?

Adding on 30 rooms to an existing hotel would be considered a betterment because the addition added to the hotel's capacity.

Copyrights to protect various forms of media are conveyed by the federal government for a period of:

The depreciation method often used for income tax purposes is the:

Coal,oil,and timber are:

A company should choose a depreciation method that most closely matches the cost of the asset against the future revenues it generates.

Sydney's Siding made a basket purchase involving four assets.Their market values were A: $45,000;B: $37,500;C: $41,000;and D: $53,000.The price Sydney's paid for the four assets was $160,000.What percentage of the $160,000 price would be allocated to asset C to the nearest one-tenth of a percent?

Which of the following would be considered part of the cost of a printing press?

GAAP does not allow property,plant,and equipment to be shown at net book value on the Balance Sheet.

Amortization is computed over the useful life of the intangible asset using the double-declining-balance method.

Trading securities are shown as long-term assets on the Balance Sheet.

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

Buildings,vehicles,and desks are:

Which type of marketable securities do NOT report increases or decreases in value on the Income Statement?

Which of the following would NOT be considered part of the cost of the land?

Replacing an engine on a delivery truck would be considered a betterment.

Which intangible asset is recorded only when an acquiring company purchases another company?

Properties whose physical substance consists of natural resources that are consumed in the operation of a business are called:

Capitol Construction Company made a basket purchase of three items.Item X was appraised at $35,000;item Y was appraised at $55,000 and item Z was appraised at $60,000.The purchase price was $125,000.The amount at which item Z should be recorded (rounded to the nearest dollar)is:

Levi's would be an example of a:

Which of the following would be considered part of land improvements?

Adding on 30 rooms to an existing hotel would be considered a betterment because the addition added to the hotel's capacity.

Copyrights to protect various forms of media are conveyed by the federal government for a period of:

The depreciation method often used for income tax purposes is the:

Coal,oil,and timber are:

A company should choose a depreciation method that most closely matches the cost of the asset against the future revenues it generates.

Sydney's Siding made a basket purchase involving four assets.Their market values were A: $45,000;B: $37,500;C: $41,000;and D: $53,000.The price Sydney's paid for the four assets was $160,000.What percentage of the $160,000 price would be allocated to asset C to the nearest one-tenth of a percent?

Which of the following would be considered part of the cost of a printing press?

GAAP does not allow property,plant,and equipment to be shown at net book value on the Balance Sheet.

Amortization is computed over the useful life of the intangible asset using the double-declining-balance method.

Trading securities are shown as long-term assets on the Balance Sheet.

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