A) Net sales revenue divided by average net fixed assets.
B) Costs that are expensed in the period incurred.
C) A contractual agreement that allows limited permission for use of a property.
D) Net income divided by average total assets.
E) An estimate of how long a tangible asset will last before it physically wears out.
F) Asset cost minus residual value.
G) Costs that are recorded as revenues.
H) An estimate of how long a company will use a particular asset.
I) Allocating the cost of tangible assets over their limited useful life.
J) A cumulative record of depreciation expense,accumulated depreciation and book value.
K) Asset cost minus accumulated depreciation.
L) Grants the exclusive right to sell or use a creative work.
M) The method whereby different parts of an asset may be depreciated over different useful lives under IFRS.
N) The principle that companies wish to pay the lowest possible tax at the last possible time.
O) Allocating the cost of intangible assets over their limited useful life.
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Multiple Choice
A) Land improvements
B) Trademarks
C) Goodwill
D) Franchise
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Multiple Choice
A) are part of the asset cost of equipment and facilities.
B) are recorded as expenses.
C) are always recorded as liabilities.
D) improve the asset beyond the current accounting period.
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Multiple Choice
A) only allowed to make this change if it gets permission from the IRS.
B) only allowed to make this change if it can show the change results in a lower net income.
C) not allowed to change depreciation methods.
D) only allowed to make this change if it can show the change results in a better measure of the business's income.
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Multiple Choice
A) Debit Cash for $500,000,debit Notes Payable for $500,000,and credit Equipment for $1,000,000.
B) Debit Equipment for $1,000,000,credit Cash for $500,000,and credit Notes Payable for $500,000.
C) Debit cash for $500,000,debit Notes Payable for $500,000,credit Equipment for $900,000,and credit Operating Expenses for $100,000.
D) Debit Equipment for $900,000,debit Operating Expenses for $100,000,credit cash for $500,000,and credit Notes Payable for $500,000.
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Multiple Choice
A) assets to be overstated.
B) liabilities to be understated.
C) stockholders' equity to be understated.
D) stockholders' equity to be overstated.
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Multiple Choice
A) Economic benefits generated by the asset.
B) Useful life of the asset.
C) Residual value of the asset.
D) Capitalized cost of the asset.
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True/False
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Multiple Choice
A) operating expense that appears on the balance sheet.
B) reduction to depreciation expense for the year.
C) contra-revenue account.
D) operating expense that appears on the income statement.
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Multiple Choice
A) $1,020,000
B) $937,500
C) $757,500
D) $840,000
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Multiple Choice
A) I - Intangible long-lived asset
B) N - Not a long-lived asset
C) T - Tangible long-lived asset
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Essay
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View Answer
Multiple Choice
A) $93,333
B) $138,880
C) $173,600
D) $280,000
Correct Answer
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Multiple Choice
A) Net sales revenue divided by average net fixed assets.
B) Costs that are expensed in the period incurred.
C) A contractual agreement that allows limited permission for use of a property.
D) Net income divided by average total assets.
E) An estimate of how long a tangible asset will last before it physically wears out.
F) Asset cost minus residual value.
G) Costs that are recorded as revenues.
H) An estimate of how long a company will use a particular asset.
I) Allocating the cost of tangible assets over their limited useful life.
J) A cumulative record of depreciation expense,accumulated depreciation and book value.
K) Asset cost minus accumulated depreciation.
L) Grants the exclusive right to sell or use a creative work.
M) The method whereby different parts of an asset may be depreciated over different useful lives under IFRS.
N) The principle that companies wish to pay the lowest possible tax at the last possible time.
O) Allocating the cost of intangible assets over their limited useful life.
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Multiple Choice
A) gain of $6,000.
B) gain of $4,000.
C) loss of $4,000.
D) loss of $6,000.
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Multiple Choice
A) a credit to Gain on Asset Value Increase.
B) a debit to Land.
C) a credit to Non-Impairment of Asset.
D) nothing;no entry would be made according to GAAP.
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Multiple Choice
A) all costs to acquire them and prepare them for use.
B) current market value or resale value.
C) the amount of cash paid for them.
D) cost minus residual (or salvage) value.
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Multiple Choice
A) Capitalized costs decrease stockholders' equity.
B) Expenses increase stockholders' equity.
C) Capitalized costs increase long-lived assets.
D) Expenses increase assets.
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Multiple Choice
A) $45,000.
B) $50,000.
C) $90,000.
D) $100,000.
Correct Answer
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Multiple Choice
A) has a greater amount invested in fixed assets than a company with a lower fixed asset turnover ratio.
B) has less invested in fixed assets than a company with a lower fixed asset turnover ratio.
C) generates less sales revenue than a company with a lower fixed asset turnover ratio.
D) makes better use of its fixed assets to generate revenues than a company with a lower fixed asset turnover ratio.
Correct Answer
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