Question 1

The ratio measuring the number of dollars of sales earned per dollar of fixed assets is the

Accepted Answer

A) fixed asset turnover ratio 
B) days' in assets ratio 
C) current asset turnover ratio 
D) intangible asset ratio 
A) fixed asset turnover ratio 
B) days' in assets ratio 
C) current asset turnover ratio 
D) intangible asset ratio

Question 2

When land is purchased to construct a new building,the cost of removing any structures on the land should be charged to the building account.

Accepted Answer

A) True 
 B)False

Question 3

It is not necessary for a company to use the same depreciation method for all of its fixed assets.

Accepted Answer

A) True 
 B)False

Question 4

When old equipment is traded in for a new equipment,the difference between the list price and the trade-in allowance is called boot.

Accepted Answer

A) True 
 B)False

Question 5

On July 1,Harding Construction purchases a bulldozer for $228,000.The equipment has an eight-year life with a residual value of $16,000.Harding uses straight-line depreciation.
(a)Calculate the depreciation expense and provide the journal entry for the first year ending December 31.
(b)Calculate the third year's depreciation expense and provide the journal entry for the third year endingDecember 31.
(c)Calculate the last year's depreciation expense and provide the journal entry for the last year.

Accepted Answer

Annual depreciation is:​ @#IMG-DLM& (a)First-year

Question 6

On June 1,Scotter Company purchased equipment at a cost of $120,000 that has a depreciable cost of $90,000 and an estimated useful life of three years or 30,000 hours.​Using straight-line depreciation,calculate depreciation expense for the first year,which ends on December 31.

Accepted Answer

A) $17,500 
B) $30,000 
C) $12,500 
D) $40,000 
A) $17,500 
B) $30,000 
C) $12,500 
D) $40,000

Question 7

Functional depreciation occurs when a fixed asset is no longer able to provide services at the level for which it was intended.

Accepted Answer

A) True 
 B)False

Question 8

Classify each of the following as:
-Paving a new parking lot

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 9

For each of the following fixed assets,determine the depreciation expense for Year 3:Disposal date is N/A if asset is still in use.Method: SL = straight-line; DDB = double-declining-balanceAssume the estimated life is five years for each asset.

Accepted Answer

The answer of For each of the following fixed assets,determine...

Question 10

The calculation for annual depreciation using the units-of-activity method is

Accepted Answer

A) (Initial Cost/Estimated Output) × Actual Yearly Output 
B) (Depreciable Cost/Yearly Output) × Estimated Output 
C) Depreciable Cost/Yearly Output 
D) (Depreciable Cost/Estimated Output) × Actual Yearly Output 
A) (Initial Cost/Estimated Output) × Actual Yearly Output 
B) (Depreciable Cost/Yearly Output) × Estimated Output 
C) Depreciable Cost/Yearly Output 
D) (Depreciable Cost/Estimated Output) × Actual Yearly Output

Question 11

In a lease contract,the party who legally owns the asset is the

Accepted Answer

A) lessee 
B) lessor 
C) operator 
D) banker 
A) lessee 
B) lessor 
C) operator 
D) banker

Question 12

Which of the following is an example of a capital expenditure?

Accepted Answer

A) cleaning the carpet in the front room 
B) tune-up for a company truck 
C) replacing an engine in a company car 
D) replacing all burned-out light bulbs in the factory 
A) cleaning the carpet in the front room 
B) tune-up for a company truck 
C) replacing an engine in a company car 
D) replacing all burned-out light bulbs in the factory

Question 13

Solare Company acquired mineral rights for $60,000,000.The diamond deposit is estimated at 6,000,000 tons.During the current year,2,300,000 tons were mined and sold.

Accepted Answer

The answer of Solare Company acquired mineral rights for $60,000,000.The...

Question 14

Classify each of the following as:
-Exterior and interior painting

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 15

Long-lived assets held for sale are classified as fixed assets.

Accepted Answer

A) True 
 B)False

Question 16

A copy machine acquired with a cost of $1,410 has an estimated useful life of four years.It is also expected to have a useful operating life of 13,350 copies.Assuming that it will have a residual value of $75,determine the depreciation for the first year by the following methods:​

Accepted Answer

(b) Double-Declining

Question 17

Classify each of the following costs associated with long-lived assets as one of the following:
-Costs of government permits required to develop land for a new business location

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 18

The higher the fixed asset turnover,the

Accepted Answer

A) less efficiently a company is using its fixed assets in generating sales 
B) more efficiently a company is using its fixed assets in generating sales 
C) more efficiently a company is using its current assets in generating sales 
D) more efficiently a company is using its intangible assets in generating sales 
A) less efficiently a company is using its fixed assets in generating sales 
B) more efficiently a company is using its fixed assets in generating sales 
C) more efficiently a company is using its current assets in generating sales 
D) more efficiently a company is using its intangible assets in generating sales

Question 19

Identify the following as a fixed asset 
(FA),or intangible asset 
(IA),natural resource 
(NR),or none of these 
(N).​

Accepted Answer

The answer of Identify the following as a fixed asset...

Question 20

Convert each of the following estimates of useful life to a straight-line depreciation rate,stated as a percentage.

Accepted Answer

(a)50% 
(1/2)
(b)12.5% 
(1/8)

The ratio measuring the number of dollars of sales earned per dollar of fixed assets is the

When land is purchased to construct a new building,the cost of removing any structures on the land should be charged to the building account.

It is not necessary for a company to use the same depreciation method for all of its fixed assets.

When old equipment is traded in for a new equipment,the difference between the list price and the trade-in allowance is called boot.

On June 1,Scotter Company purchased equipment at a cost of $120,000 that has a depreciable cost of $90,000 and an estimated useful life of three years or 30,000 hours.Using straight-line depreciation,calculate depreciation expense for the first year,which ends on December 31.

Functional depreciation occurs when a fixed asset is no longer able to provide services at the level for which it was intended.

Classify each of the following as: -Paving a new parking lot

For each of the following fixed assets,determine the depreciation expense for Year 3:Disposal date is N/A if asset is still in use.Method: SL = straight-line; DDB = double-declining-balanceAssume the estimated life is five years for each asset.

The calculation for annual depreciation using the units-of-activity method is

In a lease contract,the party who legally owns the asset is the

Which of the following is an example of a capital expenditure?

Solare Company acquired mineral rights for $60,000,000.The diamond deposit is estimated at 6,000,000 tons.During the current year,2,300,000 tons were mined and sold.

Classify each of the following as: -Exterior and interior painting

Long-lived assets held for sale are classified as fixed assets.

A copy machine acquired with a cost of $1,410 has an estimated useful life of four years.It is also expected to have a useful operating life of 13,350 copies.Assuming that it will have a residual value of $75,determine the depreciation for the first year by the following methods:

Classify each of the following costs associated with long-lived assets as one of the following: -Costs of government permits required to develop land for a new business location

The higher the fixed asset turnover,the

Identify the following as a fixed asset (FA),or intangible asset (IA),natural resource (NR),or none of these (N).

Convert each of the following estimates of useful life to a straight-line depreciation rate,stated as a percentage.

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

The ratio measuring the number of dollars of sales earned per dollar of fixed assets is the

When land is purchased to construct a new building,the cost of removing any structures on the land should be charged to the building account.

It is not necessary for a company to use the same depreciation method for all of its fixed assets.

When old equipment is traded in for a new equipment,the difference between the list price and the trade-in allowance is called boot.

On June 1,Scotter Company purchased equipment at a cost of $120,000 that has a depreciable cost of $90,000 and an estimated useful life of three years or 30,000 hours.​Using straight-line depreciation,calculate depreciation expense for the first year,which ends on December 31.

Functional depreciation occurs when a fixed asset is no longer able to provide services at the level for which it was intended.

Classify each of the following as: -Paving a new parking lot

For each of the following fixed assets,determine the depreciation expense for Year 3:Disposal date is N/A if asset is still in use.Method: SL = straight-line; DDB = double-declining-balanceAssume the estimated life is five years for each asset.

The calculation for annual depreciation using the units-of-activity method is

In a lease contract,the party who legally owns the asset is the

Which of the following is an example of a capital expenditure?

Solare Company acquired mineral rights for $60,000,000.The diamond deposit is estimated at 6,000,000 tons.During the current year,2,300,000 tons were mined and sold.

Classify each of the following as: -Exterior and interior painting

Long-lived assets held for sale are classified as fixed assets.

A copy machine acquired with a cost of $1,410 has an estimated useful life of four years.It is also expected to have a useful operating life of 13,350 copies.Assuming that it will have a residual value of $75,determine the depreciation for the first year by the following methods:​

Classify each of the following costs associated with long-lived assets as one of the following: -Costs of government permits required to develop land for a new business location

The higher the fixed asset turnover,the

Identify the following as a fixed asset (FA),or intangible asset (IA),natural resource (NR),or none of these (N).​

Convert each of the following estimates of useful life to a straight-line depreciation rate,stated as a percentage.

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

On June 1,Scotter Company purchased equipment at a cost of $120,000 that has a depreciable cost of $90,000 and an estimated useful life of three years or 30,000 hours.Using straight-line depreciation,calculate depreciation expense for the first year,which ends on December 31.

A copy machine acquired with a cost of $1,410 has an estimated useful life of four years.It is also expected to have a useful operating life of 13,350 copies.Assuming that it will have a residual value of $75,determine the depreciation for the first year by the following methods:

Identify the following as a fixed asset (FA),or intangible asset (IA),natural resource (NR),or none of these (N).