Question 1

A ____________________ is a cost that improves an operating asset and is therefore added to the asset account.

Accepted Answer

The answer of A ____________________ is a cost that improves...

Question 2

Natural resources can be replaced or restored only by an act of nature.

Accepted Answer

A) True 
 B)False

Question 3

The more efficiently a company uses its fixed assets the lower will be the fixed asset turnover ratio.

Accepted Answer

A) True 
 B)False

Question 4

Two reasons why a company might choose an accelerated depreciation method are _______________,and ______________

Accepted Answer

To minimize income and taxes

Question 5

A company sold equipment at a loss.What is the impact on the balance sheet of removing the equipment account and its related accumulated depreciation account?

Accepted Answer

A) Reduces total assets 
B) Increases total assets 
C) Has no effect on total assets 
D) Increase total assets and decrease total equity 
A) Reduces total assets 
B) Increases total assets 
C) Has no effect on total assets 
D) Increase total assets and decrease total equity

Question 6

The ________________ method of depreciation method is referred to as an "accelerated" method.

Accepted Answer

The answer of The ________________ method of depreciation method is...

Question 7

A company purchased a building for $900,000 on January 1,2013.The building is being depreciated over 40 years with an estimated residual value of $100,000.What will be the book value of the building in ten years?

Accepted Answer

A) $575,000 
B) $600,000 
C) $675,000 
D) $700,000 
A) $575,000 
B) $600,000 
C) $675,000 
D) $700,000

Question 8

Fabian Woodworks This company purchased a truck at a cost of $12,000.The truck has an estimated residual value of $2,000 and an estimated life of 5 years,or 100,000 hours of operation.The truck was purchased on January 1,2012,and was used 27,000 hours in 2012 and 26,000 hours in 2013.
-Refer to Fabian Woodworks.If the company uses the units-of-production method,what is the depreciation rate per hour for the equipment?

Accepted Answer

A) $1.00 
B) $1.10 
C) $ .10 
D) $ .12 
A) $1.00 
B) $1.10 
C) $ .10 
D) $ .12

Question 9

Land is not depreciated because it

Accepted Answer

A) appreciates in value. 
B) does not have an established depreciable life. 
C) has a useful life that is limited to the period of time a company is in business 
D) will provide future benefits for a company for an unlimited period of time. 
A) appreciates in value. 
B) does not have an established depreciable life. 
C) has a useful life that is limited to the period of time a company is in business 
D) will provide future benefits for a company for an unlimited period of time.

Question 10

Given below are several accounts and balances:
 $\begin{array}{l}
\begin{array}{lll}
\
 \text { Accumulated depreciation  } \
\text {Gain on disposal of plant assets } \
\text { Equipment (Equipment with book value of \$ 36,875 \ was sold)    } \
\text { Land } \
\text {Cash received from sale of plant asset  } \
\end{array}
\begin{array}{lll}
 \underline { 2013 }  & \underline { 2012 } \
{ \$ 178,125 }& { \$ 758,750 }\
78,125 & \
893,750 & 993,750 \
750,000 & 750,000 \
65,000 &
\end{array}
\end{array}$ A)Prepare the property plant and equipment section of the balance sheet at December 31,
2013 in the space provided below.
   B)By how much will net income increase or decrease during 2013 as a result of the above
information?

Accepted Answer

A)
 @#IMG-DLM&
 B)Net income will be reduced by de

Question 11

A _________________ is the right to produce or sell a published work.

Accepted Answer

The answer of A _________________ is the right to produce...

Question 12

Farley Mills purchased new machinery at the beginning of 2012 for $200,000.The machines had an estimated life of 5 years,an estimated residual value of $25,000,and were depreciated using the straight-line method.At the beginning of 2013,the machines were sold for $150,000 because management was unhappy with their performance.
Determine the following amounts:
 A) Book value of the machinery at the end of 2012 .
B) Gain (loss) on the disposal of the machinery at the beginning of 2013 (Indic ate the amount and whether a gain or loss)

Accepted Answer

None

Question 13

Equipment purchased at the beginning of 2012 for $200,000 with residual value of $20,000 is being depreciated over a 5-year period using the double-declining-balance method.Which of the following statements is correct concerning the financial statements at December 31,2012?

Accepted Answer

A) The equipment account now has a balance of $120,000. 
B) The book value of the equipment is now $80,000. 
C) The accumulated depreciation account balance is now $80,000. 
D) Depreciation expense for 2012 is $72,000. 
A) The equipment account now has a balance of $120,000. 
B) The book value of the equipment is now $80,000. 
C) The accumulated depreciation account balance is now $80,000. 
D) Depreciation expense for 2012 is $72,000.

A ____________________ is a cost that improves an operating asset and is therefore added to the asset account.

Natural resources can be replaced or restored only by an act of nature.

The more efficiently a company uses its fixed assets the lower will be the fixed asset turnover ratio.

Two reasons why a company might choose an accelerated depreciation method are _,and

A company sold equipment at a loss.What is the impact on the balance sheet of removing the equipment account and its related accumulated depreciation account?

The ________________ method of depreciation method is referred to as an "accelerated" method.

A company purchased a building for $900,000 on January 1,2013.The building is being depreciated over 40 years with an estimated residual value of $100,000.What will be the book value of the building in ten years?

Land is not depreciated because it

A _________________ is the right to produce or sell a published work.

Equipment purchased at the beginning of 2012 for $200,000 with residual value of $20,000 is being depreciated over a 5-year period using the double-declining-balance method.Which of the following statements is correct concerning the financial statements at December 31,2012?

Accounting and the Financial Statements

The Accounting Information System

Accrual Accounting

Internal Control and Cash

Sales and Receivables

Cost of Goods Sold and Inventory

Current and Contingent Liabilities

Long-Term Liabilities

Stockholders Equity

The Statement of Cash Flows

Financial Statement Analysis

Filters

Exam 7: Operating Assets

A ____________________ is a cost that improves an operating asset and is therefore added to the asset account.

Natural resources can be replaced or restored only by an act of nature.

The more efficiently a company uses its fixed assets the lower will be the fixed asset turnover ratio.

Two reasons why a company might choose an accelerated depreciation method are _______________,and ______________

A company sold equipment at a loss.What is the impact on the balance sheet of removing the equipment account and its related accumulated depreciation account?

The ________________ method of depreciation method is referred to as an "accelerated" method.

A company purchased a building for $900,000 on January 1,2013.The building is being depreciated over 40 years with an estimated residual value of $100,000.What will be the book value of the building in ten years?

Land is not depreciated because it

A _________________ is the right to produce or sell a published work.

Equipment purchased at the beginning of 2012 for $200,000 with residual value of $20,000 is being depreciated over a 5-year period using the double-declining-balance method.Which of the following statements is correct concerning the financial statements at December 31,2012?

Accounting and the Financial Statements

The Accounting Information System

Accrual Accounting

Internal Control and Cash

Sales and Receivables

Cost of Goods Sold and Inventory

Current and Contingent Liabilities

Long-Term Liabilities

Stockholders Equity

The Statement of Cash Flows

Financial Statement Analysis

Filters

Two reasons why a company might choose an accelerated depreciation method are _,and