FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 8: Long-Term and Other Assets

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 21

Multiple Choice

Review LaterAdd Note

Review Later

Acme paid $120,000 for a machine with a $10,000 salvage value and an estimated life of 200,000 hours. Acme reports on a calendar year basis and used the machine for 1800 hours during the first year it owned the asset. Which of the following statements accurately compare the first year depreciation expense if the asset had been purchased on January 1 of the current year versus a March 1 acquisition date. (Round any intermediary calculations to the nearest cent and your final answer to the nearest dollar.)

A) Depreciation Expense if acquired January 1 is $990 and if acquired March 1 is $825.
B) Depreciation Expense if acquired January 1 is $990 and if acquired March 1 is $743.
C) In both cases, the Depreciation Expense is $990.
D) Depreciation Expense if acquired January 1 is $1080 and if acquired March 1 is $900.

Correct Answer

verified

Show Answer

Question 22

Multiple Choice

Review LaterAdd Note

Review Later

Which of the following is often rendered obsolete because of technological advancements?

A) Patent
B) Copyright
C) Franchise
D) Goodwill

Correct Answer

verified

Show Answer

Question 23

Multiple Choice

Review LaterAdd Note

Which of the following would NOT be considered as part of the cost of a constructed building?

Woods Corporation purchased $15,000 in bonds which it plans on owning until they're repaid. Woods does not anticipate that it will need to sell the bonds to generate cash. The bonds will be classified as:

Accumulated depletion is a(n) :

The following is selected data for Bach Co.: The fixed asset turnover for 2016 was: (Round your final answer to two decimal places.)

Equity securities which management intends to hold for less than one year would be considered other long-term assets.

Realized gains and losses only occur when the security is sold for more or less than the original cost.

Which of the following marketable securities are reported at market value on the Balance Sheet date?

For which of the following securities are any increases or decreases in value reported as a separate change in Stockholders' Equity for the period?

When determining the cost of a plant asset, GAAP requires the use of the market value principle.

TNT Co. has the following assets: I.Timber reserves $400,000, with accumulated depletion of $220,000. II.Property, Plant and Equipment $600,000 with accumulated depreciation $275,000. III.Other long-term assets $125,000. IV.Goodwill $75,000 In what order should these be presented on the Balance Sheet?

If an asset produces more revenue in its early years, the depreciation method best suited for this asset would be the:

Which of the following would NOT be considered part of the cost of machinery and equipment?

Expenditures incurred, such as changing the oil and filter on a delivery truck, would be considered ordinary repairs.

The following is selected data for Northwest Industries: The return on assets for 2016 was: (Round your final answer two decimal places, X.XX%.)

Coyote, Inc. purchased a van for $68,000, with an estimated useful life of 5 years and a residual value of $8000. The company uses the double-declining-balance method of depreciation; however, for year 3 they switch to the straight-line method. There is no change to the estimated useful life or residual value. What is the accumulated depreciation balance at the end of year 4? (Round any intermediary calculations to the nearest cent and your final answer to the nearest dollar.)

The process of allocating the cost of intangible assets to expense is called amortization.

In accounting, what is the meaning of capitalized?

Which of the following would be considered as part of the cost of purchasing an existing building?