Question 1
Depreciable cost divided by useful life in units
Cost plus salvage value divided by the useful life in years
Cost less salvage value divided by the useful life in years
Cost divided by useful life in years
1 points
Question 2
Net income is overstated and assets are overstated
Net income is understated and assets are understated
Expenses are overstated and net income is understated
Expenses are understated and assets are understated
1 points
Question 3
Current assets investments plant assets and intangible assets.
Current assets long-term assets revenues and intangible assets.
Current assets investments plant assets and equity.
Current liabilities investments plant assets and intangible assets.
1 points
Question 4
Balance sheet in the current assets section
Balance sheet in the property plant and equipment section
Balance sheet in the long-term liabilities section
Income statement as an operating expense
1 points
Question 5
Straight-Line
Units-of-Production
Double-Declining-Balance
Sum-of-the-Years-Digits
1 points
Question 6
Added to the cost of the machinery
Treated as a machinery repairs expense
Placed in a separate account to be capitalized
A maintenance expense
1 points
Question 7
Year 1 = $87000; Year 2 = $69600
Year 1 = $82000; Year 2 = $65600
Year 1 = $80000; Year 2 = $60000
Not enough information present to answer the question.
1 points
Question 8
Listed as long-term assets on the balance sheet
Expensed and become part of the income statement
Listed as current assets on the balance sheet
Listed as other intangibles on the balance sheet
1 points
Question 9
Depleted
Amortized
Expensed
Depreciated
1 points
Question 10
$10500
$10000
$9500
$8360
1 points
Question 11
Is the process of allocating the cost of natural resources to periods in which they are consumed
Is also called depreciation
Is also called amortization
Is an unrealized expense reported in equity
1 points
Question 12
Historical cost
Book value
Present value
Current (market) value
1 points
Question 13
Straight-line method
Units-of-depletion method
Double-declining balance method
Expense method
1 points
Question 14
Are revenue expenditures
Extend an asset’s useful life beyond its original estimate
Are additional costs of plant assets that do not materially increase the asset’s life
Are expensed as incurred
1 points
Question 15
Survey and legal fees
Realtor commissions
Paving
Unpaid property taxes on the land
1 points
Question 16
Cash and accounts receivable
Cash and revenue
Cash and rent expense
Common stock and revenue
1 points
Question 17
The asset vehicle would be overstated
The asset vehicle would be understated
Repairs expense would be understated
Net income would be overstated
1 points
Question 18
Are additional costs of plant assets that do not materially increase the asset’s life or its productive capabilities
Are known as balance sheet expenditures.
Extend the asset’s useful life.
Substantially benefit future periods.
1 points
Question 19
Office Equipment
Land
Delivery Equipment
Building
1 points
Question 20
Balance sheet in the current assets section
Balance sheet in the fixed assets section
Balance sheet in the current liabilities section
Income statement as an expense
1 points
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