Question 1

Recognition of impairment for property,plant,and equipment is required if book value exceeds:

Accepted Answer

A) Fair value. 
B) Present value of expected cash flows. 
C) Undiscounted expected cash flows. 
D) Accumulated depreciation. 
A) Fair value. 
B) Present value of expected cash flows. 
C) Undiscounted expected cash flows. 
D) Accumulated depreciation.

Question 2

According to International Financial Reporting Standards (IFRS),property,plant,and equipment must be valued at cost less accumulated depreciation.

Accepted Answer

A) True 
 B)False

Question 3

A major expenditure increased a truck's life beyond the original estimate of life.GAAP permits the expenditure to be debited to:

Accepted Answer

A) Repairs. 
B) Accumulated depreciation. 
C) Major repairs. 
D) None of these answer choices are correct. 
A) Repairs. 
B) Accumulated depreciation. 
C) Major repairs. 
D) None of these answer choices are correct.

Question 4

Listed below are five terms followed by a list of phrases that describe or characterize each of the terms.Match each phrase with the number for the correct term.

Accepted Answer

The answer of Listed below are five terms followed by...

Question 5

Belotti would record depletion in 2016 of:

Accepted Answer

A) $41,000. 
B) $32,800. 
C) $30,750. 
D) $24,600. 
A) $41,000. 
B) $32,800. 
C) $30,750. 
D) $24,600.

Question 6

The overriding principle for all depreciation methods is that the method must be:

Accepted Answer

A) Conservative and economic. 
B) Systematic and rational. 
C) Consistent and conservative. 
D) Significant and material. 
A) Conservative and economic. 
B) Systematic and rational. 
C) Consistent and conservative. 
D) Significant and material.

Question 7

Briefly discuss the factors that determine the service life of a depreciable asset.

Accepted Answer

The physical life sets the max

Question 8

Changes in the estimates involved in depreciation,depletion,and amortization require retroactive restatement of financial statements.

Accepted Answer

A) True 
 B)False

Question 9

According to International Financial Reporting Standards (IFRS),the costs to successfully defend an intangible right normally are capitalized and amortized.

Accepted Answer

A) True 
 B)False

Question 10

On September 30,2016,Morgan,Inc.acquired all of the outstanding common stock of Pathways,Inc. ,for $100 million.In addition to tangible assets,Morgan recorded the following assets as a result of the acquisition:   
Morgan's policy is to amortize intangible assets using the straight-line method,no residual value,and a six-year useful life.
Required:
What is the total amount of expenses that would appear in Morgan's income statement for the year ended December 31,2016,related to these items?

Accepted Answer

Expenses for the year include:

Question 11

Briefly explain the differences between the terms depreciation,depletion,and amortization.

Accepted Answer

The terms refer to different t

Question 12

Using the double-declining balance method,depreciation for 2016 and book value at December 31,2016,would be:

Accepted Answer

A) $22,500 and $22,500. 
B) $22,500 and $17,500. 
C) $20,000 and $25,000. 
D) $20,000 and $20,000. 
A) $22,500 and $22,500. 
B) $22,500 and $17,500. 
C) $20,000 and $25,000. 
D) $20,000 and $20,000.

Question 13

Nanki Corporation purchased equipment on January 1,2014,for $650,000.In 2014 and 2015,Nanki depreciated the asset on a straight-line basis with an estimated useful life of eight years and a $10,000 residual value.In 2016,due to changes in technology,Nanki revised the useful life to a total of six years with no residual value.What depreciation would Nanki record for the year 2016 on this equipment?

Accepted Answer

A) $108,333. 
B) $106,667. 
C) $122,500. 
D) None of these answer choices are correct. 
A) $108,333. 
B) $106,667. 
C) $122,500. 
D) None of these answer choices are correct.

Question 14

In December of 2016,XL Computer's internal auditors discovered that office equipment costing $800,000 was charged to expense in 2014.The asset had an expected life of 10 years with no residual value.XL would have recorded a half year of depreciation in 2014.
Required:
Prepare the necessary correcting entry that would be made in 2016 (ignore income taxes),and the entry to record depreciation for 2016.

Accepted Answer

@#IMG-DLM& 
$800,000 F1F1F1S1

Question 15

The table below contains data on depreciation for machinery.
Required: Fill in the missing data in the table.

Accepted Answer

The answer of The table below contains data on depreciation...

Question 16

Briefly differentiate between activity-based and time-based allocation methods.

Accepted Answer

Time-based methods allocate an asset's c

Question 17

International Financial Reporting Standards (IFRS)require goodwill to be tested for impairment at least annually.

Accepted Answer

A) True 
 B)False

Question 18

MACRS (modified accelerated cost recovery system)depreciation is equivalent to sum-of-the-years' digits depreciation.

Accepted Answer

A) True 
 B)False

Question 19

Depreciation (to the nearest dollar)for 2016,using sum-of-the-years' digits,would be:

Accepted Answer

A) $ 9,091. 
B) $24,545. 
C) $27,273. 
D) $ 8,182. 
A) $ 9,091. 
B) $24,545. 
C) $27,273. 
D) $ 8,182.

Question 20

Statutory depletion is the maximum amount of depletion that may be reported in financial statements prepared according to GAAP.

Accepted Answer

A) True 
 B)False

Recognition of impairment for property,plant,and equipment is required if book value exceeds:

According to International Financial Reporting Standards (IFRS),property,plant,and equipment must be valued at cost less accumulated depreciation.

A major expenditure increased a truck's life beyond the original estimate of life.GAAP permits the expenditure to be debited to:

Listed below are five terms followed by a list of phrases that describe or characterize each of the terms.Match each phrase with the number for the correct term.

Belotti would record depletion in 2016 of:

The overriding principle for all depreciation methods is that the method must be:

Briefly discuss the factors that determine the service life of a depreciable asset.

Changes in the estimates involved in depreciation,depletion,and amortization require retroactive restatement of financial statements.

According to International Financial Reporting Standards (IFRS),the costs to successfully defend an intangible right normally are capitalized and amortized.

Briefly explain the differences between the terms depreciation,depletion,and amortization.

Using the double-declining balance method,depreciation for 2016 and book value at December 31,2016,would be:

The table below contains data on depreciation for machinery. Required: Fill in the missing data in the table.

Briefly differentiate between activity-based and time-based allocation methods.

International Financial Reporting Standards (IFRS)require goodwill to be tested for impairment at least annually.

MACRS (modified accelerated cost recovery system)depreciation is equivalent to sum-of-the-years' digits depreciation.

Depreciation (to the nearest dollar)for 2016,using sum-of-the-years' digits,would be:

Statutory depletion is the maximum amount of depletion that may be reported in financial statements prepared according to GAAP.

Environment and Theoretical Structure of Financial Accounting

Review of the Accounting Process

The Balance Sheet and Financial Disclosures

The Income Statement, comprehensive Income, and the Statement of Cash Flows

Income Measurement

Time Value of Money Concepts

Cash and Receivables

Inventories: Measurement

Inventories: Additional Issues

Property, plant, and Equipment and Intangible Assets: Acquisition and Disposition

Investments

Current Liabilities and Contingencies

Bonds and Long-Term Notes

Leases

Accounting for Income Taxes

Pensions and Other Postretirement Benefits

Shareholders Equity

Share-Based Compensation and Earnings Per Share

Accounting Changes

The Statement of Cash Flows

Filters

Exam 11: Property, plant, and Equipment and Intangible Assets: Utilization and Impairment

Recognition of impairment for property,plant,and equipment is required if book value exceeds:

According to International Financial Reporting Standards (IFRS),property,plant,and equipment must be valued at cost less accumulated depreciation.

A major expenditure increased a truck's life beyond the original estimate of life.GAAP permits the expenditure to be debited to:

Listed below are five terms followed by a list of phrases that describe or characterize each of the terms.Match each phrase with the number for the correct term.

Belotti would record depletion in 2016 of:

The overriding principle for all depreciation methods is that the method must be:

Briefly discuss the factors that determine the service life of a depreciable asset.

Changes in the estimates involved in depreciation,depletion,and amortization require retroactive restatement of financial statements.

According to International Financial Reporting Standards (IFRS),the costs to successfully defend an intangible right normally are capitalized and amortized.

Briefly explain the differences between the terms depreciation,depletion,and amortization.

Using the double-declining balance method,depreciation for 2016 and book value at December 31,2016,would be:

The table below contains data on depreciation for machinery. Required: Fill in the missing data in the table.

Briefly differentiate between activity-based and time-based allocation methods.

International Financial Reporting Standards (IFRS)require goodwill to be tested for impairment at least annually.

MACRS (modified accelerated cost recovery system)depreciation is equivalent to sum-of-the-years' digits depreciation.

Depreciation (to the nearest dollar)for 2016,using sum-of-the-years' digits,would be:

Statutory depletion is the maximum amount of depletion that may be reported in financial statements prepared according to GAAP.

Environment and Theoretical Structure of Financial Accounting

Review of the Accounting Process

The Balance Sheet and Financial Disclosures

The Income Statement, comprehensive Income, and the Statement of Cash Flows

Income Measurement

Time Value of Money Concepts

Cash and Receivables

Inventories: Measurement

Inventories: Additional Issues

Property, plant, and Equipment and Intangible Assets: Acquisition and Disposition

Investments

Current Liabilities and Contingencies

Bonds and Long-Term Notes

Leases

Accounting for Income Taxes

Pensions and Other Postretirement Benefits

Shareholders Equity

Share-Based Compensation and Earnings Per Share

Accounting Changes

The Statement of Cash Flows

Filters