Question 1

Revising depreciation estimates affects the amounts of depreciation expense recorded in past periods.

Accepted Answer

A) True 
 B)False

Question 2

Financial statement data for the years ended December 31 for Parker Corporation are as follows:​​   (a) Determine the fixed asset turnover for the current and prior years.
(b) Does the change in fixed asset turnover from the prior year to the current year indicate a favorable or unfavorable trend?

Accepted Answer

​​ @#IMG-DLM& (a)Sales divided by average fixed as

Question 3

Classify each of the following costs associated with long-lived assets as one of the following:
-Freight costs paid on purchase of new equipment

Accepted Answer

A) Buildings 
B) Machinery and equipment 
C) Land 
D) Land improvements 
A) Buildings 
B) Machinery and equipment 
C) Land 
D) Land improvements

Question 4

A gain can be realized when a fixed asset is discarded.

Accepted Answer

A) True 
 B)False

Question 5

Match the intangible assets described with their proper classification (a-d).
​
-Reputation of a company

Accepted Answer

A) Patent 
B) Copyright 
C) Trademark 
D) Goodwill 
A) Patent 
B) Copyright 
C) Trademark 
D) Goodwill

Question 6

Equipment costing $80,000 with a useful life of 10 years and a residual value of $8,000 has been depreciated for six years by the straight-line method.Assume a fiscal year ending December 31.

Accepted Answer

The answer of Equipment costing $80,000 with a useful life...

Question 7

Classify each of the following as:
-New landscaping

Accepted Answer

A) Ordinary maintenance and repairs 
B) Asset improvements 
C) Extraordinary repairs 
A) Ordinary maintenance and repairs 
B) Asset improvements 
C) Extraordinary repairs

Question 8

Match each account name to the financial statement section (a-i) in which it would appear.
-Loss on Disposal of Asset

Accepted Answer

A) Current assets 
B) Fixed assets 
C) Intangible assets 
D) Current liability 
E) Long-term liability
F)Owner's equity
G)Revenues
H)Operating expenses
I)Other revenue and expense 
A) Current assets 
B) Fixed assets 
C) Intangible assets 
D) Current liability 
E) Long-term liability
F)Owner's equity
G)Revenues
H)Operating expenses
I)Other revenue and expense

Question 9

Minerals removed from the earth are classified as intangible assets.

Accepted Answer

A) True 
 B)False

Question 10

Equipment acquired at a cost of $126,000 has a book value of $42,000.Journalize the disposal of the equipment under the following independent assumptions.​   Journal

Accepted Answer

The answer of Equipment acquired at a cost of $126,000...

Question 11

All property,plant,and equipment assets are depreciated over time.

Accepted Answer

A) True 
 B)False

Question 12

When a company exchanges machinery and receives a trade-in allowance less than the book value,this transaction would be recorded with which of the following entries?

Accepted Answer

A) debit Machinery and Accumulated Depreciation; credit Machinery and Cash 
B) debit Cash and Machinery; credit Accumulated Depreciation 
C) debit Cash and Machinery; credit Accumulated Depreciation and Machinery 
D) debit Machinery, Accumulated Depreciation, and Loss on Exchange of Machinery; credit Machinery and Cash 
A) debit Machinery and Accumulated Depreciation; credit Machinery and Cash 
B) debit Cash and Machinery; credit Accumulated Depreciation 
C) debit Cash and Machinery; credit Accumulated Depreciation and Machinery 
D) debit Machinery, Accumulated Depreciation, and Loss on Exchange of Machinery; credit Machinery and Cash

Question 13

Match the intangible assets described with their proper classification (a-d).
​
-Nike swoosh

Accepted Answer

A) Patent 
B) Copyright 
C) Trademark 
D) Goodwill 
A) Patent 
B) Copyright 
C) Trademark 
D) Goodwill

Question 14

Classify each of the following costs associated with long-lived assets as one of the following:
-Fences around land at new business location

Accepted Answer

A) Land improvements 
B) Buildings 
C) Land 
D) Machinery and equipment 
A) Land improvements 
B) Buildings 
C) Land 
D) Machinery and equipment

Question 15

If a fixed asset with a book value of $10,000 is traded for a similar fixed asset,a trade-in allowance of $15,000 is granted by the seller,and the transaction is deemed to have commercial substance,the buyer would report a gain on exchange of fixed assets of $5,000.

Accepted Answer

A) True 
 B)False

Question 16

A copy machine acquired on May 1 with a cost of $2,545 has an estimated useful life of three years.Assuming that it will have a residual value of $445,determine the depreciation for the first and second year by the straight-line method.Round your answers to the nearest whole dollar.

Accepted Answer

Straight-Line Depreciation = 
(Cost - Es

Question 17

The process of transferring the cost of an asset to an expense account is called all of the following except

Accepted Answer

A) depletion 
B) allocation 
C) amortization 
D) depreciation 
A) depletion 
B) allocation 
C) amortization 
D) depreciation

Question 18

Which of the following is true?

Accepted Answer

A) If using the double-declining-balance method, the total amount of depreciation expense during the life of the asset will be the highest. 
B) If using the units-of-activity method, it is possible to depreciate more than the depreciable cost. 
C) If using the straight-line method, the amount of depreciation expense during the first year is higher than that of the double-declining-balance. 
D) Regardless of the depreciation method, the amount of total depreciation expense during the life of the asset will be the same. 
A) If using the double-declining-balance method, the total amount of depreciation expense during the life of the asset will be the highest. 
B) If using the units-of-activity method, it is possible to depreciate more than the depreciable cost. 
C) If using the straight-line method, the amount of depreciation expense during the first year is higher than that of the double-declining-balance. 
D) Regardless of the depreciation method, the amount of total depreciation expense during the life of the asset will be the same.

Question 19

Computer equipment was acquired at the beginning of the year at a cost of $57,000 that has an estimated residual value of $9,000 and an estimated useful life of five years.Determine the second-year depreciation using the straight-line method.

Accepted Answer

A) $13,200 
B) $19,200 
C) $9,600 
D) $9,000 
A) $13,200 
B) $19,200 
C) $9,600 
D) $9,000

Question 20

A characteristic of a fixed asset is that it is

Accepted Answer

A) intangible 
B) used in the operations of a business 
C) held for sale in the ordinary course of the business 
D) a short-term investment 
A) intangible 
B) used in the operations of a business 
C) held for sale in the ordinary course of the business 
D) a short-term investment

Revising depreciation estimates affects the amounts of depreciation expense recorded in past periods.

Financial statement data for the years ended December 31 for Parker Corporation are as follows: (a) Determine the fixed asset turnover for the current and prior years. (b) Does the change in fixed asset turnover from the prior year to the current year indicate a favorable or unfavorable trend?

Classify each of the following costs associated with long-lived assets as one of the following: -Freight costs paid on purchase of new equipment

A gain can be realized when a fixed asset is discarded.

Match the intangible assets described with their proper classification (a-d). -Reputation of a company

Equipment costing $80,000 with a useful life of 10 years and a residual value of $8,000 has been depreciated for six years by the straight-line method.Assume a fiscal year ending December 31.

Classify each of the following as: -New landscaping

Match each account name to the financial statement section (a-i) in which it would appear. -Loss on Disposal of Asset

Minerals removed from the earth are classified as intangible assets.

Equipment acquired at a cost of $126,000 has a book value of $42,000.Journalize the disposal of the equipment under the following independent assumptions. Journal

All property,plant,and equipment assets are depreciated over time.

When a company exchanges machinery and receives a trade-in allowance less than the book value,this transaction would be recorded with which of the following entries?

Match the intangible assets described with their proper classification (a-d). -Nike swoosh

Classify each of the following costs associated with long-lived assets as one of the following: -Fences around land at new business location

If a fixed asset with a book value of $10,000 is traded for a similar fixed asset,a trade-in allowance of $15,000 is granted by the seller,and the transaction is deemed to have commercial substance,the buyer would report a gain on exchange of fixed assets of $5,000.

A copy machine acquired on May 1 with a cost of $2,545 has an estimated useful life of three years.Assuming that it will have a residual value of $445,determine the depreciation for the first and second year by the straight-line method.Round your answers to the nearest whole dollar.

The process of transferring the cost of an asset to an expense account is called all of the following except

Which of the following is true?

Computer equipment was acquired at the beginning of the year at a cost of $57,000 that has an estimated residual value of $9,000 and an estimated useful life of five years.Determine the second-year depreciation using the straight-line method.

A characteristic of a fixed asset is that it is

Introduction to Accounting and Business

Analyzing Transactions

The Adjusting Process

Completing the Accounting Cycle

Accounting Systems

Accounting for Merchandising Businesses

Inventories

Internal Control and Cash

Receivables

Current Liabilities and Payroll

Accounting for Partnerships and Limited Liability Companies

Corporations: Organization, stock Transactions, and Dividends

Long-Term Liabilities: Bonds and Notes

Investments and Fair Value Accounting

Statement of Cash Flows

Financial Statement Analysis

Filters

Exam 10: Long-Term Assets: Fixed and Intangible

Revising depreciation estimates affects the amounts of depreciation expense recorded in past periods.

Classify each of the following costs associated with long-lived assets as one of the following: -Freight costs paid on purchase of new equipment

A gain can be realized when a fixed asset is discarded.

Match the intangible assets described with their proper classification (a-d). ​ -Reputation of a company

Equipment costing $80,000 with a useful life of 10 years and a residual value of $8,000 has been depreciated for six years by the straight-line method.Assume a fiscal year ending December 31.

Classify each of the following as: -New landscaping

Match each account name to the financial statement section (a-i) in which it would appear. -Loss on Disposal of Asset

Minerals removed from the earth are classified as intangible assets.

Equipment acquired at a cost of $126,000 has a book value of $42,000.Journalize the disposal of the equipment under the following independent assumptions.​ Journal

All property,plant,and equipment assets are depreciated over time.

When a company exchanges machinery and receives a trade-in allowance less than the book value,this transaction would be recorded with which of the following entries?

Match the intangible assets described with their proper classification (a-d). ​ -Nike swoosh

Classify each of the following costs associated with long-lived assets as one of the following: -Fences around land at new business location

If a fixed asset with a book value of $10,000 is traded for a similar fixed asset,a trade-in allowance of $15,000 is granted by the seller,and the transaction is deemed to have commercial substance,the buyer would report a gain on exchange of fixed assets of $5,000.

A copy machine acquired on May 1 with a cost of $2,545 has an estimated useful life of three years.Assuming that it will have a residual value of $445,determine the depreciation for the first and second year by the straight-line method.Round your answers to the nearest whole dollar.

The process of transferring the cost of an asset to an expense account is called all of the following except

Which of the following is true?

Computer equipment was acquired at the beginning of the year at a cost of $57,000 that has an estimated residual value of $9,000 and an estimated useful life of five years.Determine the second-year depreciation using the straight-line method.

A characteristic of a fixed asset is that it is

Introduction to Accounting and Business

Analyzing Transactions

The Adjusting Process

Completing the Accounting Cycle

Accounting Systems

Accounting for Merchandising Businesses

Inventories

Internal Control and Cash

Receivables

Current Liabilities and Payroll

Accounting for Partnerships and Limited Liability Companies

Corporations: Organization, stock Transactions, and Dividends

Long-Term Liabilities: Bonds and Notes

Investments and Fair Value Accounting

Statement of Cash Flows

Financial Statement Analysis

Filters

Match the intangible assets described with their proper classification (a-d). -Reputation of a company

Equipment acquired at a cost of $126,000 has a book value of $42,000.Journalize the disposal of the equipment under the following independent assumptions. Journal

Match the intangible assets described with their proper classification (a-d). -Nike swoosh