ACC 206 Week 2 Quiz – Strayer NEW



Click on the Link Below to Purchase A+ Graded Course Material

http://budapp.net/ACC-206-Accounting-Principles-II-Week-2-Quiz-Strayer-260.htm


CHAPTER10

PLANTASSETS,NATURALRESOURCES,ANDINTANGIBLEASSETS



CHAPTERSTUDYOBJECTIVES


1.Describehowthecostprincipleappliestoplantassets.

2.Explaintheconceptofdepreciation..

3.Computeperiodicdepreciationusingdifferentmethods.

4.Describetheprocedureforrevisingperiodicdepreciation.

5.Distinguishbetweenrevenueandcapitalexpenditures,andexplaintheentriesforeach.

6.Explainhowtoaccountforthedisposalofaplantasset.

7.Computeperiodicdepletionofnaturalresources.

8.Explainthebasicissuesrelatedtoaccountingforintangibleassets.

9.Indicatehowplantassets,naturalresources,andintangibleassetsarereported.

10.Explainhowtoaccountfortheexchangeofplantassets.


TRUE-FALSESTATEMENTS


1.     Allplantassets(fixedassets)mustbedepreciatedfor accountingpurposes.

2.     Whenpurchasingland,thecostsforclearing,draining,filling,andgradingshouldbe chargedto aLandImprovementsaccount.

3.     Whenpurchasingdeliveryequipment,salestaxesandmotorvehiclelicensesshouldbe chargedto DeliveryEquipment.

4.     Landimprovementsaregenerallychargedto theLandaccount.

5.     Oncecostisestablishedforaplantasset,itbecomes thebasis ofaccounting fortheasset unlesstheassetappreciatesinvalue,inwhichcase,marketvaluebecomesthebasisfor accountability.

6.     Thebookvalueof aplantassetisalwaysequaltoitsfairmarketvalue.

7.     Recordingdepreciationonplantassetsaffectsthebalancesheetandtheincome statement.

8.     Thedepreciablecostof aplant asset is itsoriginalcostminusobsolescence.

9.     Recordingdepreciationeachperiodisanapplicationof thematchingprinciple.

10.     TheAccumulatedDepreciationaccountrepresentsacashfundavailabletoreplaceplant assets.

11.     Incalculatingdepreciation,bothplantassetcost andusefullifearebasedonestimates.

12.     Usingtheunits-of-activitymethodofdepreciatingfactoryequipmentwillgenerallyresultin moredepreciationexpensebeingrecordedoverthelifeoftheassetthanifthestraight-line method hadbeenused.

13.     Salvagevalueisnotsubtractedfromplantassetcostindeterminingdepreciationexpense underthedeclining-balancemethodofdepreciation.

14.     Thedeclining-balancemethodofdepreciationiscalledanaccelerateddepreciation methodbecauseitdepreciatesanassetinashorterperiodoftimethantheasset'suseful life.

15.     Underthedouble-declining-balancemethod,thedepreciationrateusedeachyear remainsconstant.

16.     TheIRSdoesnotrequirethetaxpayertousethesamedepreciationmethodonthetax returnthatisusedinpreparingfinancialstatements.

17.     Achangeintheestimatedusefullifeofaplantassetmaycauseachangeintheamount ofdepreciationrecognizedinthecurrentandfutureperiods,but nottopriorperiods.

18.     Achangeintheestimatedsalvagevalueofaplantassetrequiresarestatementofprior years'depreciation.

19.     Todetermineanewdepreciationamountafterachangeinestimateofaplantasset's useful life, the asset'sremaining depreciablecost isdividedbyits remainingusefullife.

20.     Additionsand improvementstoaplantassetthatincreasethe asset'soperatingefficiency, productive capacity,or expectedusefullife aregenerallyexpensed intheperiodincurred.

21.     Capitalexpendituresareexpendituresthatincreasethecompany'sinvestmentin productive facilities.

22.     Ordinaryrepairs shouldberecognizedwhenincurredas revenueexpenditures.

23.     A characteristicofcapitalexpendituresis that theexpendituresoccurfrequently duringthe period ofownership.

24.     Onceanassetisfullydepreciated,noadditionaldepreciationcanbetakeneventhough theasset is still beingusedbythebusiness.

25.     Thefairmarketvalueof a plantasset isalwaysthesameasits bookvalue.

26.     Iftheproceedsfromthesaleofaplantassetexceeditsbookvalue,againondisposal occurs.

27.     Alossondisposalofaplantassetcanonlyoccurifthecashproceeds received fromthe assetsaleis lessthanthe asset'sbook value.

28.     Thebookvalueofaplantassetistheamount originallypaid fortheassetlessanticipated salvagevalue.

29.     Alossondisposal ofaplantasset asaresult ofasaleoraretirementiscalculated inthe sameway.

30.     A plantassetmustbefullydepreciatedbeforeit canberemovedfromthe books.

31.     Ifaplantasset issoldata gain,thegain ondisposal shouldreducethecost ofgoodssold section of the incomestatement.

32.     Depletioncostperunitiscomputedbydividingthetotalcostofanaturalresourcebythe estimatednumberof unitsintheresource.

33.     TheAccumulatedDepletionaccountisdeductedfromthecostofthenaturalresourcein thebalancesheet.

34.     Depletionexpenseforaperiodisonlyrecognizedonnaturalresourcesthathavebeen extractedandsoldduringtheperiod.

35.     Naturalresourcesarelong-livedproductiveassetsthatareextractedinoperationsand arereplaceableonlybyanactof nature.

36.     Thecostofnaturalresourcesisnotallocatedtoexpensebecausethenaturalresources arereplaceableonlybyanactof nature.

37.     Conceptually,thecostallocationproceduresfornaturalresourcesparallelsthatofplant assets.

38.     Naturalresourcesincludestandingtimberandundergrounddepositsofoil,gas,and minerals.

39.     Ifanacquiredfranchiseorlicensehasanindefinitelife,thecostoftheassetisnot amortized.

40.     Whenanentirebusinessispurchased,goodwillistheexcessofcostoverthebookvalue of thenet assetsacquired.

41.     Researchand development costswhich result in asuccessful product which ispatentable arechargedtothePatentaccount.

42.     Thecostof apatentmustbeamortizedovera 20-yearperiod.

43.     Thecostofapatentshouldbeamortizedoveritslegallifeorusefullife,whicheveris shorter.

44.     The balancesofthe majorclassesofplantassetsand accumulated depreciationby major classes shouldbedisclosedinthebalance sheetornotes.

45.     Theassetturnover ratioiscalculated astotalsales dividedbyendingtotalassets.

46.     Researchanddevelopmentcostscanbeclassifiedasaproperty,plant,andequipment itemoras an intangibleasset.

a47.     An exchangeofplantassetshas commercial substanceifthe futurecashflows change as a resultofthe exchange.

a48.     Companiesrecordagainorlossontheexchangeofplantassetsbecausemost exchangeshavecommercialsubstance.

a49.     Whenplantassetsareexchanged,thecostofthenewassetisthebookvalueoftheold assetplus anycashpaid.

Additional True-FalseQuestions

50.     Whenconstructingabuilding,acompanyispermittedtoincludetheacquisitioncostand certaininterest costs incurredinfinancingtheproject.

51.     Recognitionofdepreciationpermitstheaccumulationofcashforthereplacementofthe asset.

52.     Whenanassetispurchasedduringtheyear,itisnotnecessarytorecorddepreciation expense inthefirst yearunderthedeclining-balancedepreciationmethod.

53.     Depletionexpenseisreported intheincomestatementas anoperatingexpense.

54.     Goodwillisnotrecognizedinaccountingunlessitisacquiredfromanotherbusiness enterprise.

55.     Researchanddevelopmentcostsshouldbechargedtoexpensewhenincurred.

56.       Alossontheexchangeofplantassetsoccurswhenthefairmarketvalueoftheoldasset islessthanitsbookvalue.







MULTIPLECHOICEQUESTIONS


57.     Thecostof apurchasedbuildingincludes allofthefollowingexcept a.closingcosts.
b.realestatebroker's commission. c.remodeling costs.
d.Allof theseareincluded.

58.     Acompanypurchasedlandfor$90,000cash.Realestatebrokers'commissionwas $5,000and$7,000wasspentfordemolishinganoldbuildingonthelandbefore constructionofanewbuildingcouldstart.Underthecostprinciple,thecostoflandwould be recordedat
a.$97,000. b.$90,000. c.$95,000. d.$102,000.

59.     Whichoneofthefollowingitemsisnotconsideredapartofthecostofatruckpurchased for businessuse?
a.Salestax
b.Trucklicensec.Freightcharges
d.Costofletteringonsideoftruck

60.     Whichofthefollowingassetsdoesnotdeclineinservicepotentialoverthecourseofits useful life?
a.Equipment b.Furnishings c.Land
d.Fixtures

61.     Thefoursubdivisions forplantassetsare
a.land,landimprovements,buildings,andequipment. b.intangibles,land,buildings,andequipment.
c.furnishingsandfixtures,land,buildings, andequipment. d.property,plant,equipment,andland.

62.     Thecostof landdoesnotinclude
a.realestatebrokers' commission. b.annualpropertytaxes.
c.accruedpropertytaxesassumedbythepurchaser. d.title fees.

63.     FeeneyClinicpurchaseslandfor$130,000cash.Theclinicassumes$1,500inproperty taxesdueontheland.Thetitleandattorneyfeestotaled$1,000.Theclinichastheland gradedfor $2,200.WhatamountdoesFeeneyClinicrecordasthecostforthe land?
a.$132,200 b.$130,000 c.$134,700 d.$132,500

64.     BelleCompanybuyslandfor$50,000on12/31/07.Asof3/31/08,thelandhas appreciatedinvalueto$50,700.On12/31/08,thelandhasanappraisedvalueof $51,800.Bywhatamountshouldthe Landaccount beincreasedin 2008?
a.$0b.$700
c.$1,100 d.$1,800

65.     PineCompanyacquireslandfor$86,000cash.Additional costsareasfollows:

Removalof shed                                        $300 Fillingandgrading                                      1,500 Salvagevalue oflumberofshed                   120 Brokercommission                                     1,130 Pavingofparkinglot                                 10,000 Closingcosts                                                 560

Pinewillrecordtheacquisitioncostof thelandas a.$86,000.
b.$87,690. c.$89,610. d.$89,370.


Comments

Post a Comment

Popular posts from this blog

BUS 515 Week 2 Discussion Questions – Strayer NEW

Click On The Link Below to Purchase A+ Graded Material Instant Download http://budapp.net/BUS-515-Week-2-Discussion-Questions-Strayer-NEW-BUS515W2D.htm Week 2 DQ 1 "Operation Strategy and Competitiveness" Please respond to the following: ·          Analyze one existing business operations strategy, and then evaluate how well or how poorly the chosen strategy supports that business’ vision, mission, and business plan. Provide support for your rationale. ·          Suggest the competitive priorities that the existing business that you chose used in the development of its operations strategy. Provide specific examples to support your suggestion. Week 2 DQ 2 "Product Design and Product Selection" Please respond to the following: ·          Using product screening, analyze a new product from operations, marketing, and finance perspectives. Pre...
Read more

ACC 571 Week 2 Assignment 1 – Strayer NEW

Click On The Link Below to Purchase A+ Graded Material Instant Download http://budapp.net/ACC-571-Week-2-Assignment-1-Strayer-NEW-ACC-571A1.htm Assignment 1: Corporate Fraud Schemes  Due Week 2 and worth 240 points Identify an organization that was involved in corporate fraud. Explain how fraud can be detected and evaluate the importance of teamwork and leadership in a fraud investigation.     For this assignment, research the Internet or Strayer databases and identify an organization that was involved in corporate fraud.     Write a three to four (3-4) page paper in which you: 1.       Based on your research, identify and assess the fraud that occurred in the organization and the impact it has had on the corporation’s investors and creditors. Provide support for your rationale. 2.       Suggest how a financial forensic investigation could have detected fraud in the organization that yo...
Read more

BUS 310 Week 2 Discussion Questions – Strayer NEW

Click On The Link Below to Purchase A+ Graded Material Instant Download http://budapp.net/BUS-310-Week-2-Discussion-Questions-Strayer-NEW-BUS310W2D.htm Week 2 Discussion 1 "The Legal Environment" Please respond to the following: ·          Of the HR regulations introduced in Chapter 2, decide which is the most challenging for the average HR department to reach compliance. Provide a rationale with your response. ·          Take a position on the following statement: Affirmative action hurts an organization’s ability to hire the best candidate for a position. Support your position with evidence or examples Week 2 Discussion 2 "The Global Environment" Please respond to the following: ·          Many organizations are increasingly becoming global through the assistance of the Internet and virtual work arrangements. Determine if this sce...
Read more