Question 1

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

Accepted Answer

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

Question 2

Machinery acquired at a cost of $80,000 and on which there is accumulated depreciation of $55,000 
(including depreciation for the current year to date)is exchanged for similar machinery.Assume that the transaction has commercial substance.For financial reporting purposes,present entries to record the exchange of the machinery under each of the following assumptions:

Accepted Answer

The answer of Machinery acquired at a cost of $80,000...

Question 3

Classify each of the following costs associated with long-lived assets as one of the following:
-Sales taxes paid on new factory 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

The double-declining-balance method of depreciation uses a declining percentage rate in determining the depreciation amount.

Accepted Answer

A) True 
 B)False

Question 5

The cost of new equipment is called a revenue expenditure because it will help generate revenues in the future.

Accepted Answer

A) True 
 B)False

Question 6

Residual value is also known as all of the following except

Accepted Answer

A) scrap value 
B) trade-in value 
C) salvage value 
D) net book value 
A) scrap value 
B) trade-in value 
C) salvage value 
D) net book value

Question 7

Sands Company purchased mining rights for $500,000.It expects to harvest 1 million tons of ore over the next five years.During the current year,Sands mined 350,000 tons of ore.The entry to record the depletion would include a

Accepted Answer

A) debit to Depletion Expense for $175,000 
B) credit to Depletion Expense for $350,000 
C) debit to Accumulated Depletion for $175,000 
D) credit to Accumulated Depletion for $350,000 
A) debit to Depletion Expense for $175,000 
B) credit to Depletion Expense for $350,000 
C) debit to Accumulated Depletion for $175,000 
D) credit to Accumulated Depletion for $350,000

Question 8

The cost of computer equipment does not include the consultant's fee to supervise installation of the equipment.

Accepted Answer

A) True 
 B)False

Question 9

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

Accepted Answer

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

Question 10

Match each account name to the financial statement section (a-i) in which it would appear.
-Amortization Expense

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 11

Classify each of the following costs associated with long-lived assets as one of the following:
-Cost of installing new equipment

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 12

The entry to record the disposal of fixed assets will include a credit to Accumulated Depreciation.

Accepted Answer

A) True 
 B)False

Question 13

Newport Company has sales of $2,025,000 for the current year.The book value of its fixed assets at the beginning of the year was $550,000 and at the end of the year was $800,000.The fixed asset turnover ratio for Newport is

Accepted Answer

A) 3.0 
B) 3.6 
C) 3.7 
D) 2.5 
A) 3.0 
B) 3.6 
C) 3.7 
D) 2.5

Question 14

When a company discards machinery that is fully depreciated,this transaction would be recorded as a

Accepted Answer

A) debit to Accumulated Depreciation and credit to Machinery 
B) debit to Machinery and a credit to Accumulated Depreciation 
C) debit to Cash and a credit to Accumulated Depreciation 
D) debit to Depreciation Expense and a credit Accumulated Depreciation 
A) debit to Accumulated Depreciation and credit to Machinery 
B) debit to Machinery and a credit to Accumulated Depreciation 
C) debit to Cash and a credit to Accumulated Depreciation 
D) debit to Depreciation Expense and a credit Accumulated Depreciation

Question 15

The method of determining depreciation that yields successive reductions in the periodic depreciation charge over the estimated life of the asset is the

Accepted Answer

A) units-of-production method 
B) double-declining-balance method 
C) straight-line method 
D) time-valuation method 
A) units-of-production method 
B) double-declining-balance method 
C) straight-line method 
D) time-valuation method

Question 16

As a company records depreciation expense for a period of time,cash is accumulated to replace fixed assets as they wear out.

Accepted Answer

A) True 
 B)False

Question 17

An exchange is said to have commercial substance if future cash flows remain the same as a result of the exchange.

Accepted Answer

A) True 
 B)False

Question 18

The following information was taken from a recent annual report of Harrison Company 
(in millions):​   Required

Accepted Answer

The answer of The following information was taken from a...

Question 19

When a plant asset is traded for another similar asset,losses on the asset traded are not recognized.

Accepted Answer

A) True 
 B)False

Question 20

Classify each of the following as:
-Resurfacing a pool in an apartment building

Accepted Answer

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

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

Classify each of the following costs associated with long-lived assets as one of the following: -Sales taxes paid on new factory equipment

The double-declining-balance method of depreciation uses a declining percentage rate in determining the depreciation amount.

The cost of new equipment is called a revenue expenditure because it will help generate revenues in the future.

Residual value is also known as all of the following except

Sands Company purchased mining rights for $500,000.It expects to harvest 1 million tons of ore over the next five years.During the current year,Sands mined 350,000 tons of ore.The entry to record the depletion would include a

The cost of computer equipment does not include the consultant's fee to supervise installation of the equipment.

Match the intangible assets described with their proper classification (a-d). -iTunes music

Match each account name to the financial statement section (a-i) in which it would appear. -Amortization Expense

Classify each of the following costs associated with long-lived assets as one of the following: -Cost of installing new equipment

The entry to record the disposal of fixed assets will include a credit to Accumulated Depreciation.

Newport Company has sales of $2,025,000 for the current year.The book value of its fixed assets at the beginning of the year was $550,000 and at the end of the year was $800,000.The fixed asset turnover ratio for Newport is

When a company discards machinery that is fully depreciated,this transaction would be recorded as a

The method of determining depreciation that yields successive reductions in the periodic depreciation charge over the estimated life of the asset is the

As a company records depreciation expense for a period of time,cash is accumulated to replace fixed assets as they wear out.

An exchange is said to have commercial substance if future cash flows remain the same as a result of the exchange.

The following information was taken from a recent annual report of Harrison Company (in millions): Required

When a plant asset is traded for another similar asset,losses on the asset traded are not recognized.

Classify each of the following as: -Resurfacing a pool in an apartment building

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

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

Classify each of the following costs associated with long-lived assets as one of the following: -Sales taxes paid on new factory equipment

The double-declining-balance method of depreciation uses a declining percentage rate in determining the depreciation amount.

The cost of new equipment is called a revenue expenditure because it will help generate revenues in the future.

Residual value is also known as all of the following except

Sands Company purchased mining rights for $500,000.It expects to harvest 1 million tons of ore over the next five years.During the current year,Sands mined 350,000 tons of ore.The entry to record the depletion would include a

The cost of computer equipment does not include the consultant's fee to supervise installation of the equipment.

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

Match each account name to the financial statement section (a-i) in which it would appear. -Amortization Expense

Classify each of the following costs associated with long-lived assets as one of the following: -Cost of installing new equipment

The entry to record the disposal of fixed assets will include a credit to Accumulated Depreciation.

Newport Company has sales of $2,025,000 for the current year.The book value of its fixed assets at the beginning of the year was $550,000 and at the end of the year was $800,000.The fixed asset turnover ratio for Newport is

When a company discards machinery that is fully depreciated,this transaction would be recorded as a

The method of determining depreciation that yields successive reductions in the periodic depreciation charge over the estimated life of the asset is the

As a company records depreciation expense for a period of time,cash is accumulated to replace fixed assets as they wear out.

An exchange is said to have commercial substance if future cash flows remain the same as a result of the exchange.

The following information was taken from a recent annual report of Harrison Company (in millions):​ Required

When a plant asset is traded for another similar asset,losses on the asset traded are not recognized.

Classify each of the following as: -Resurfacing a pool in an apartment building

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). -Location of a company

Match the intangible assets described with their proper classification (a-d). -iTunes music

The following information was taken from a recent annual report of Harrison Company (in millions): Required