Question 1

Identify the following as a Fixed Asset (FA),or Intangible Asset (IA),or Natural Resource (NR),or Neither (N)

Accepted Answer

The answer of Identify the following as a Fixed Asset...

Question 2

For income tax purposes most companies use an accelerated deprecation method called double declining balance.

Accepted Answer

A) True 
 B)False

Question 3

When depreciation estimates are revised,all years of the asset's life are affected.

Accepted Answer

A) True 
 B)False

Question 4

The cost of repairing damage to a machine during installation is debited to a fixed asset account.

Accepted Answer

A) True 
 B)False

Question 5

A fixed asset with a cost of $41,000 and accumulated depreciation of $36,500 is traded for a similar asset priced at $60,000.Assuming a trade-in allowance of $3,000,the recognized loss on the trade is

Accepted Answer

A) $3,000 
B) $4,500 
C) $ 500 
D) $1,500 
A) $3,000 
B) $4,500 
C) $ 500 
D) $1,500

Question 6

On December 31,Strike Company has decided to sell one of its batting cages.The initial cost of the equipment was $310,000 with an accumulated depreciation of $260,000.Depreciation has been taken up to the end of the year.The company found a company that is willing to buy the equipment for $20,000.What is the amount of the gain or loss on this transaction?

Accepted Answer

A) Gain of $20,000 
B) Loss of $30,000 
C) No gain or loss 
D) Cannot be determined 
A) Gain of $20,000 
B) Loss of $30,000 
C) No gain or loss 
D) Cannot be determined

Question 7

Ordinary gains from the sale of fixed assets should be reported in the other income section of the income statement.

Accepted Answer

A) True 
 B)False

Question 8

When a seller allows a buyer an amount for old equipment that is traded in for new equipment of similar use,this amount is known as boot.

Accepted Answer

A) True 
 B)False

Question 9

What is the cost of the land,based upon the following data?

Accepted Answer

The answer of What is the cost of the land,based...

Question 10

Intangible assets differ from property,plant and equipment assets in that they lack physical substance.

Accepted Answer

A) True 
 B)False

Question 11

Capital expenditures are costs of acquiring,constructing,adding,or replacing property,plant and equipment.

Accepted Answer

A) True 
 B)False

Question 12

Which intangible assets are amortized over their useful life?

Accepted Answer

A) trademarks 
B) goodwill 
C) patents 
D) all of the above 
A) trademarks 
B) goodwill 
C) patents 
D) all of the above

Question 13

The transfer to expense of the cost of intangible assets attributed to the passage of time or decline in usefulness is called amortization.

Accepted Answer

A) True 
 B)False

Question 14

Standby equipment held for use in the event of a breakdown of regular equipment is reported as property,plant,and equipment on the balance sheet.

Accepted Answer

A) True 
 B)False

Question 15

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 16

The entry to record the disposal of fixed assets will include a credit to accumulated depreciation.

Accepted Answer

A) True 
 B)False

Question 17

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 18

Machinery was purchased on January 1,2010 for $51,000.The machinery has an estimated life of 7 years and an estimated salvage value of $9,000.Double-declining balance depreciation for 2011 would be

Accepted Answer

A) $10,929 
B) $6,000 
C) $10,500 
D) $10,408 
A) $10,929 
B) $6,000 
C) $10,500 
D) $10,408

Question 19

A fixed asset's estimated value at the time it is to be retired from service is called

Accepted Answer

A) book value 
B) residual value 
C) market value 
D) carrying value 
A) book value 
B) residual value 
C) market value 
D) carrying value

Question 20

The cost of a patent with a remaining legal life of 10 years and an estimated useful life of 7 years is amortized over 10 years.

Accepted Answer

A) True 
 B)False

Identify the following as a Fixed Asset (FA),or Intangible Asset (IA),or Natural Resource (NR),or Neither (N)

For income tax purposes most companies use an accelerated deprecation method called double declining balance.

When depreciation estimates are revised,all years of the asset's life are affected.

The cost of repairing damage to a machine during installation is debited to a fixed asset account.

A fixed asset with a cost of $41,000 and accumulated depreciation of $36,500 is traded for a similar asset priced at $60,000.Assuming a trade-in allowance of $3,000,the recognized loss on the trade is

Ordinary gains from the sale of fixed assets should be reported in the other income section of the income statement.

When a seller allows a buyer an amount for old equipment that is traded in for new equipment of similar use,this amount is known as boot.

What is the cost of the land,based upon the following data?

Intangible assets differ from property,plant and equipment assets in that they lack physical substance.

Capital expenditures are costs of acquiring,constructing,adding,or replacing property,plant and equipment.

Which intangible assets are amortized over their useful life?

The transfer to expense of the cost of intangible assets attributed to the passage of time or decline in usefulness is called amortization.

Standby equipment held for use in the event of a breakdown of regular equipment is reported as property,plant,and equipment on the balance sheet.

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.

The entry to record the disposal of fixed assets will include a credit to accumulated depreciation.

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

Machinery was purchased on January 1,2010 for $51,000.The machinery has an estimated life of 7 years and an estimated salvage value of $9,000.Double-declining balance depreciation for 2011 would be

A fixed asset's estimated value at the time it is to be retired from service is called

The cost of a patent with a remaining legal life of 10 years and an estimated useful life of 7 years is amortized over 10 years.

Introduction to Accounting and Business

Analyzing Transactions

The Adjusting Process

Completing the Accounting Cycle

Accounting for Merchandising Businesses

Inventories

Sarbanes-Oxley, internal Control, and Cash

Receivables

Current Liabilities and Payroll

Corporations: Organization, stock Transactions, and Dividends

Long-Term Liabilities: Bonds and Notes

Investments and Fair Value Accounting

Statement of Cash Flows

Financial Statement Analysis

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Exam 9: Fixed Assets and Intangible Assets

Identify the following as a Fixed Asset (FA),or Intangible Asset (IA),or Natural Resource (NR),or Neither (N)

For income tax purposes most companies use an accelerated deprecation method called double declining balance.

When depreciation estimates are revised,all years of the asset's life are affected.

The cost of repairing damage to a machine during installation is debited to a fixed asset account.

A fixed asset with a cost of $41,000 and accumulated depreciation of $36,500 is traded for a similar asset priced at $60,000.Assuming a trade-in allowance of $3,000,the recognized loss on the trade is

Ordinary gains from the sale of fixed assets should be reported in the other income section of the income statement.

When a seller allows a buyer an amount for old equipment that is traded in for new equipment of similar use,this amount is known as boot.

What is the cost of the land,based upon the following data?

Intangible assets differ from property,plant and equipment assets in that they lack physical substance.

Capital expenditures are costs of acquiring,constructing,adding,or replacing property,plant and equipment.

Which intangible assets are amortized over their useful life?

The transfer to expense of the cost of intangible assets attributed to the passage of time or decline in usefulness is called amortization.

Standby equipment held for use in the event of a breakdown of regular equipment is reported as property,plant,and equipment on the balance sheet.

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.

The entry to record the disposal of fixed assets will include a credit to accumulated depreciation.

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

Machinery was purchased on January 1,2010 for $51,000.The machinery has an estimated life of 7 years and an estimated salvage value of $9,000.Double-declining balance depreciation for 2011 would be

A fixed asset's estimated value at the time it is to be retired from service is called

The cost of a patent with a remaining legal life of 10 years and an estimated useful life of 7 years is amortized over 10 years.

Introduction to Accounting and Business

Analyzing Transactions

The Adjusting Process

Completing the Accounting Cycle

Accounting for Merchandising Businesses

Inventories

Sarbanes-Oxley, internal Control, and Cash

Receivables

Current Liabilities and Payroll

Corporations: Organization, stock Transactions, and Dividends

Long-Term Liabilities: Bonds and Notes

Investments and Fair Value Accounting

Statement of Cash Flows

Financial Statement Analysis

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