Question 1

All amounts paid to get an asset in place and ready for use are referred to as:

Accepted Answer

A)  deferred expenditures. 
B)  revenue expenditures. 
C)  residual value. 
D)  cost of an asset. 
A)  deferred expenditures. 
B)  revenue expenditures. 
C)  residual value. 
D)  cost of an asset.

Question 2

The acquisition costs of property, plant, and equipment should include all costs necessary to get the asset in place and ready for use.

Accepted Answer

A) True 
 B)False

Question 3

Expenditures made to extend an asset's life are called revenue expenditures.

Accepted Answer

A) True 
 B)False

Question 4

Expenditures that add to the utility of fixed assets for more than one accounting period are called:

Accepted Answer

A)  committed expenditures. 
B)  revenue expenditures. 
C)  current expenditures. 
D)  capital expenditures. 
A)  committed expenditures. 
B)  revenue expenditures. 
C)  current expenditures. 
D)  capital expenditures.

Question 5

A company purchased a photocopy machine for $16,000. It has a useful life of 4 years and a residual value of $1,000. Compute depreciation for the second year under each of the following methods: (a) straight-line and (b) double-declining-balance.

Accepted Answer

The answer of A company purchased a photocopy machine for...

Question 6

The exclusive right to use a certain name or symbol is called a:

Accepted Answer

A)  franchise. 
B)  patent. 
C)  trademark. 
D)  copyright. 
A)  franchise. 
B)  patent. 
C)  trademark. 
D)  copyright.

All amounts paid to get an asset in place and ready for use are referred to as:

The acquisition costs of property, plant, and equipment should include all costs necessary to get the asset in place and ready for use.

Expenditures made to extend an asset's life are called revenue expenditures.

Expenditures that add to the utility of fixed assets for more than one accounting period are called:

A company purchased a photocopy machine for $16,000. It has a useful life of 4 years and a residual value of $1,000. Compute depreciation for the second year under each of the following methods: (a) straight-line and (b) double-declining-balance.

The exclusive right to use a certain name or symbol is called a:

The Role of Accounting in Business

Basic Accounting Concepts

Accrual Accounting Concepts

Accounting for Merchandising Businesses

Sarbanes-Oxley, Internal Control, and Cash

Receivables and Inventories

Liabilities and Stockholders Equity

Financial Statement Analysis

Accounting Systems for Manufacturing Businesses

Cost Behavior and Cost-Volume-Profit Analysis

Differential Analysis and Product Pricing

Budgeting and Standard Cost Systems

Performance Evaluation for Decentralized Operations

Capital Investment Analysis

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Exam 7: Fixed Assets and Intangible Assets

All amounts paid to get an asset in place and ready for use are referred to as:

The acquisition costs of property, plant, and equipment should include all costs necessary to get the asset in place and ready for use.

Expenditures made to extend an asset's life are called revenue expenditures.

Expenditures that add to the utility of fixed assets for more than one accounting period are called:

A company purchased a photocopy machine for $16,000. It has a useful life of 4 years and a residual value of $1,000. Compute depreciation for the second year under each of the following methods: (a) straight-line and (b) double-declining-balance.

The exclusive right to use a certain name or symbol is called a:

The Role of Accounting in Business

Basic Accounting Concepts

Accrual Accounting Concepts

Accounting for Merchandising Businesses

Sarbanes-Oxley, Internal Control, and Cash

Receivables and Inventories

Liabilities and Stockholders Equity

Financial Statement Analysis

Accounting Systems for Manufacturing Businesses

Cost Behavior and Cost-Volume-Profit Analysis

Differential Analysis and Product Pricing

Budgeting and Standard Cost Systems

Performance Evaluation for Decentralized Operations

Capital Investment Analysis

Filters