Deck 19: Plant Assets and Intangible Assets

Question 1

If a plant asset costs $3,000.00, has accumulated depreciation of $2,200.00, and is sold for $800.00, the gain or loss on disposal is

A) an $800. 00 gain.
B) an $800. 00 loss.
C) a $2,200. 00 loss.
D) no gain or loss.

Answer 1

no gain or loss.

Question 2

The more efficient the investment, the

A) lower the return on investment (ROI).
B) higher the return on investment (ROI).
C) higher the current ratio.
D) lower the current ratio.

Answer 2

higher the return on investment (ROI).

Question 3

If an intangible asset's useful life is different from its legal life, amortization should be based on

A) only the legal life.
B) only the useful life.
C) the legal or useful life, whichever is greater.
D) the legal or useful life, whichever is less.

Answer 3

the legal or useful life, whichever is less.

Question 4

GAAP requires that the cost of a plant asset be

A) totally expensed in the first year of the plant asset's life.
B) expensed over ten years.
C) expensed over the plant asset's useful life.
D) expensed over the plant asset's legal life.

Question 5

Generally, a business removes a plant asset from use and disposes of it

A) when a profit can be made on the disposal.
B) when the asset is no longer usable.
C) when the asset is three years old.
D) at the end of each fiscal year.

Question 6

Some examples of plant assets are

A) prepaid insurance, computers, and equipment.
B) supplies, furniture, and cash.
C) delivery equipment, supplies, and computers.
D) none of these.

Question 7

The book value of a plant asset is its original cost

A) minus accumulated depreciation.
B) plus accumulated depreciation.
C) plus salvage value.
D) minus salvage value.

Question 8

If a plant asset costs $6,000.00, has accumulated depreciation of $5,000.00, and is sold for $1,200.00, the gain or loss on disposal is a

A) $1,200. 00 gain.
B) $5,000. 00 loss.
C) $200. 00 gain.
D) $200. 00 loss.

Question 9

The amount by which a plant asset depreciates is classified as a(n)

A) asset.
B) liability.
C) revenue.
D) expense.

Question 10

Select the one term that best fits each definition

-The value of an asset determined by tax authorities for the purpose of calculating taxes.

A) accelerated depreciation
B) amortization
C) assessed value
D) declining-balance method of depreciation
E) double declining-balance method of depreciation
F) gain
G) gain on plant assets
H) intangible assets
I) loss
J) loss on plant assets
K) personal property
L) plant asset record
M) real property
N) return on investment (ROI)

Question 11

Select the one term that best fits each definition

-All property not classified as real property.

A) accelerated depreciation
B) amortization
C) assessed value
D) declining-balance method of depreciation
E) double declining-balance method of depreciation
F) gain
G) gain on plant assets
H) intangible assets
I) loss
J) loss on plant assets
K) personal property
L) plant asset record
M) real property
N) return on investment (ROI)

Question 12

Select the one term that best fits each definition

-An increase in equity resulting from activity other than selling goods or services.

A) accelerated depreciation
B) amortization
C) assessed value
D) declining-balance method of depreciation
E) double declining-balance method of depreciation
F) gain
G) gain on plant assets
H) intangible assets
I) loss
J) loss on plant assets
K) personal property
L) plant asset record
M) real property
N) return on investment (ROI)

Question 13

Select the one term that best fits each definition

-An accounting form on which a business records information about each plant asset.

A) accelerated depreciation
B) amortization
C) assessed value
D) declining-balance method of depreciation
E) double declining-balance method of depreciation
F) gain
G) gain on plant assets
H) intangible assets
I) loss
J) loss on plant assets
K) personal property
L) plant asset record
M) real property
N) return on investment (ROI)

Question 14

Select the one term that best fits each definition

-Any method of depreciation which records greater depreciation expense in the early years and less depreciation expense in the later years.

A) accelerated depreciation
B) amortization
C) assessed value
D) declining-balance method of depreciation
E) double declining-balance method of depreciation
F) gain
G) gain on plant assets
H) intangible assets
I) loss
J) loss on plant assets
K) personal property
L) plant asset record
M) real property
N) return on investment (ROI)

Question 15

Select the one term that best fits each definition

-A decrease in equity resulting from activity other than selling goods or services.

A) accelerated depreciation
B) amortization
C) assessed value
D) declining-balance method of depreciation
E) double declining-balance method of depreciation
F) gain
G) gain on plant assets
H) intangible assets
I) loss
J) loss on plant assets
K) personal property
L) plant asset record
M) real property
N) return on investment (ROI)

Question 16

Select the one term that best fits each definition

-Land and anything attached to the land.

A) accelerated depreciation
B) amortization
C) assessed value
D) declining-balance method of depreciation
E) double declining-balance method of depreciation
F) gain
G) gain on plant assets
H) intangible assets
I) loss
J) loss on plant assets
K) personal property
L) plant asset record
M) real property
N) return on investment (ROI)

Question 17

Select the one term that best fits each definition

-The decrease in equity that results when a plant asset is sold for less than book value.

A) accelerated depreciation
B) amortization
C) assessed value
D) declining-balance method of depreciation
E) double declining-balance method of depreciation
F) gain
G) gain on plant assets
H) intangible assets
I) loss
J) loss on plant assets
K) personal property
L) plant asset record
M) real property
N) return on investment (ROI)

Question 18

Select the one term that best fits each definition

-A declining-balance rate that is two times the straight-line rate.

A) accelerated depreciation
B) amortization
C) assessed value
D) declining-balance method of depreciation
E) double declining-balance method of depreciation
F) gain
G) gain on plant assets
H) intangible assets
I) loss
J) loss on plant assets
K) personal property
L) plant asset record
M) real property
N) return on investment (ROI)

Question 19

Select the one term that best fits each definition

-The spreading of the cost of an intangible asset over its useful life.

A) accelerated depreciation
B) amortization
C) assessed value
D) declining-balance method of depreciation
E) double declining-balance method of depreciation
F) gain
G) gain on plant assets
H) intangible assets
I) loss
J) loss on plant assets
K) personal property
L) plant asset record
M) real property
N) return on investment (ROI)

Question 20

Select the one term that best fits each definition

-The ratio of the money earned on an investment relative to the amount of the investment.

A) accelerated depreciation
B) amortization
C) assessed value
D) declining-balance method of depreciation
E) double declining-balance method of depreciation
F) gain
G) gain on plant assets
H) intangible assets
I) loss
J) loss on plant assets
K) personal property
L) plant asset record
M) real property
N) return on investment (ROI)

Question 21

Select the one term that best fits each definition

-An increase in equity that results when a plant asset is sold for more than book value.

A) accelerated depreciation
B) amortization
C) assessed value
D) declining-balance method of depreciation
E) double declining-balance method of depreciation
F) gain
G) gain on plant assets
H) intangible assets
I) loss
J) loss on plant assets
K) personal property
L) plant asset record
M) real property
N) return on investment (ROI)

Question 22

Select the one term that best fits each definition

-An asset that does not have physical substance.

A) accelerated depreciation
B) amortization
C) assessed value
D) declining-balance method of depreciation
E) double declining-balance method of depreciation
F) gain
G) gain on plant assets
H) intangible assets
I) loss
J) loss on plant assets
K) personal property
L) plant asset record
M) real property
N) return on investment (ROI)

Question 23

Select the one term that best fits each definition

-A type of accelerated depreciation that multiplies the book value of an asset by a constant depreciation rate to determine annual depreciation.

A) accelerated depreciation
B) amortization
C) assessed value
D) declining-balance method of depreciation
E) double declining-balance method of depreciation
F) gain
G) gain on plant assets
H) intangible assets
I) loss
J) loss on plant assets
K) personal property
L) plant asset record
M) real property
N) return on investment (ROI)