A) Tangible assets used in the operation of a business that have a useful life of more than one accounting period B) Current assets C) Held for sale D) Intangible assets used in the operations of a business that have a useful life of more than one accounting period E) Tangible assets used in the operation of business that have a useful life of less than one accounting period A) Tangible assets used in the operation of a business that have a useful life of more than one accounting period B) Current assets C) Held for sale D) Intangible assets used in the operations of a business that have a useful life of more than one accounting period E) Tangible assets used in the operation of business that have a useful life of less than one accounting period

A company purchased land on which to construct a new building for a cost of $250,000.Additional costs incurred were: \[\begin{array} { | l | r | } \hline \text { Real estate broker's commissions } & \$ 1 5 , 0 0 0 \\ \hline \text { Legal fees incurted in purchase of the real estate } & 2 , 5 0 0 \\ \hline \text { Landscaping } & 10,000 \\ \hline \text { Expenses to remove old house located on land } & 3 , 0 0 0 \\ \hline \text { Proceeds from selling materials salvaged from old house } & 1,000\\ \hline \end{array}\] What total dollar amount should be charged to Land and what amount should be charged to the new Building?

All costs should be charged to Land and

A) Gives its owner the exclusive right to publish and sell a musical or literary work during the life of the creator plus 50 years B) Is an exclusive right granted to its owner to manufacture and sell a device or to use a process for 20 years C) Is an exclusive right granted to its owner to manufacture and sell a device or to use a process for 50 years D) Is the amount by which the value of a company exceeds the fair market value of a company's net assets if purchased separately E) Gives its owner the exclusive right to publish and sell a musical or literary work during the life of the creator plus 17 years A) Gives its owner the exclusive right to publish and sell a musical or literary work during the life of the creator plus 50 years B) Is an exclusive right granted to its owner to manufacture and sell a device or to use a process for 20 years C) Is an exclusive right granted to its owner to manufacture and sell a device or to use a process for 50 years D) Is the amount by which the value of a company exceeds the fair market value of a company's net assets if purchased separately E) Gives its owner the exclusive right to publish and sell a musical or literary work during the life of the creator plus 17 years

Exam 8: Reporting and Analyzing Long-Term Assets

A depreciable asset currently has a $40,100 book value.The company owning the asset uses straight-line depreciation.They paid $70,000 for this asset and consider it to have a $1,000 salvage value with a twelve year useful life.How long has the company owned this asset?

(Multiple Choice)

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Question 121

A method that charges the same amount of expense over each period of the asset's useful life is called:

(Multiple Choice)

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Question 122

_____________ are the federal income tax rules for depreciating assets.

(Short Answer)

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Question 123

What are the general accounting procedures for recording asset disposals?

(Essay)

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Question 124

A company purchased equipment valued at $825,000 on January 1.The equipment has an estimated useful life of seven years or six million units.The equipment is estimated to have a salvage value of $35,000.Assuming the double declining balance method of depreciation,what is the annual depreciation for the second year if .5 million units were produced?

(Short Answer)

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Question 125

A company paid $770,000 plus $5,000 in closing costs for property that included land appraised at $384,000; land improvements appraised at $128,000; and a building appraised at $288,000.The plan is to use the building as a manufacturing plant.Determine the amounts that should be recorded as: (a)Land............................$_________ (b)Land Improvements....$_ (c)Building......................$___________

(Essay)

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Question 126

A company purchased property for $100,000.The property included a building,a parking lot and land.The building was appraised at $62,000; the land at $45,000 and the parking lot at $18,000.The value of the land that will be included in the accounting record is:

(Multiple Choice)

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Question 127

Plant assets are:

(Multiple Choice)

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Question 128

_________________________ are capital expenditures that make a plant asset more productive; they often involve adding a component to an asset or replacing one of its old components with a better one and do not always increase an asset's life.

(Short Answer)

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Question 129

A depreciation method in which a plant asset's depreciation expense for a period is determined by applying a constant depreciation rate each period to the asset's beginning book value is called:

(Multiple Choice)

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Question 130

A company purchased a heating system on January 2,1997,for $225,000.The system had an estimated useful life of 15 years.On January 3,2010,the company completed a renovation of the system that cost of $33,000 and now expects the system to be more efficient to last 8 years beyond the original estimate.The company uses the straight-line method of depreciation. (a)Prepare the journal entry at January 3,2010,to record the renovation of the heating system. (b)Prepare the journal entry at December 31,2010,to record the depreciation for 2010.

(Essay)

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Question 131

Explain how to calculate total asset turnover.Describe what it reveals about a company's financial condition,whether a higher or lower ratio is desirable and how it is best applied for comparative purposes.

(Essay)

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Question 132

When a company constructs a building,the cost of the building includes materials and labor,design fees,building permits and insurance during construction.

(True/False)

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Question 133

The purchase of a property that included land,building and improvements is called a lump-sum purchase.

(True/False)

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Question 134

_____________________ refers to the insufficient capacity of a company's plant asset to meet the company's productive demands.

(Short Answer)

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Question 135

Natural resources are assets that include standing timber,mineral deposits,oil wells and gas fields.

(True/False)

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Question 136

A company purchased a machine valued at $66,000.It traded in an old (similar)machine for a $9,000 trade-in allowance,meaning the company paid $57,000 cash with the trade-in.The old machine cost $44,000 and had accumulated depreciation of $36,000.What is the recorded value of the new machine?

(Multiple Choice)

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Question 137

A company purchased land on which to construct a new building for a cost of $250,000.Additional costs incurred were: Real estate broker's commissions \ 15,000 Legal fees incurted in purchase of the real estate 2,500 Landscaping 10,000 Expenses to remove old house located on land 3,000 Proceeds from selling materials salvaged from old house 1,000 What total dollar amount should be charged to Land and what amount should be charged to the new Building?

(Essay)

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Question 138

A patent:

(Multiple Choice)

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Question 139

___________________ are additional costs of plant assets that do not materially increase the asset's life or productive capabilities.

(Short Answer)

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Question 140

Showing 121 - 140 of 212

A depreciable asset currently has a $40,100 book value.The company owning the asset uses straight-line depreciation.They paid $70,000 for this asset and consider it to have a $1,000 salvage value with a twelve year useful life.How long has the company owned this asset?

A method that charges the same amount of expense over each period of the asset's useful life is called:

_____________ are the federal income tax rules for depreciating assets.

What are the general accounting procedures for recording asset disposals?

A company purchased property for $100,000.The property included a building,a parking lot and land.The building was appraised at $62,000; the land at $45,000 and the parking lot at $18,000.The value of the land that will be included in the accounting record is:

Plant assets are:

_________________________ are capital expenditures that make a plant asset more productive; they often involve adding a component to an asset or replacing one of its old components with a better one and do not always increase an asset's life.

A depreciation method in which a plant asset's depreciation expense for a period is determined by applying a constant depreciation rate each period to the asset's beginning book value is called:

Explain how to calculate total asset turnover.Describe what it reveals about a company's financial condition,whether a higher or lower ratio is desirable and how it is best applied for comparative purposes.

When a company constructs a building,the cost of the building includes materials and labor,design fees,building permits and insurance during construction.

The purchase of a property that included land,building and improvements is called a lump-sum purchase.

_____________________ refers to the insufficient capacity of a company's plant asset to meet the company's productive demands.

Natural resources are assets that include standing timber,mineral deposits,oil wells and gas fields.

A company purchased a machine valued at $66,000.It traded in an old (similar)machine for a $9,000 trade-in allowance,meaning the company paid $57,000 cash with the trade-in.The old machine cost $44,000 and had accumulated depreciation of $36,000.What is the recorded value of the new machine?

A patent:

___________________ are additional costs of plant assets that do not materially increase the asset's life or productive capabilities.

Introducing Accounting in Business

Analyzing and Recording Transactions

Adjusting Accounts and Preparing Financial Statements

Reporting and Analyzing Merchandising Operations

Reporting and Analyzing Inventories

Reporting and Analyzing Cash and Internal Controls

Reporting and Analyzing Receivables

Reporting and Analyzing Current Liabilities

Reporting and Analyzing Long-Term Liabilities

Reporting and Analyzing Equity

Reporting and Analyzing Cash Flows

Analyzing and Interpreting Financial Statements

Investments and International Operations

Reporting and Analyzing Partnerships

Reporting and Preparing Special Journals

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