FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 9: Long-Lived Assets

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 101

True/False

Review LaterAdd Note

Review Later

Any non-refundable taxes incurred on the acquisition of an asset would be expensed at the time of acquisition.

Correct Answer

verified

Show Answer

Question 102

Multiple Choice

Review LaterAdd Note

Review Later

If a long-lived asset is retired before it is fully depreciated, and no residual or scrap value is received,

A) a gain on disposal will be recorded.
B) phantom depreciation must be taken as though the asset were still on the books.
C) a loss on disposal will be recorded.
D) no gain or loss on disposal will be recorded.

Correct Answer

verified

Show Answer

Question 103

True/False

Review LaterAdd Note

Additions and improvements are costs that are incurred to maintain the asset's operating efficiency, productive capacity, or expected useful life.

Which of the following items is considered an operating expenditure?

On January 1, 2017, Keebler Company purchased the copyright to Bodine Computer Tutorials for $81,000. It is estimated that the copyright will have a useful life of 5 years with an estimated residual value of $6,000. The amount of amortization expense recognized for the year 2017 would be

In an exchange of assets, the new asset is recorded at

In a disposal of an asset, if the carrying amount of the asset exceeds the proceeds received, profit will increase.

A long-lived asset was purchased on January 1 for $30,000 with an estimated residual value of $6,000 at the end of its useful life. The current year's depreciation expense is $3,000 calculated on the straight-line basis and the balance of the accumulated depreciation account at the end of the year is $15,000. The remaining useful life of the asset is

Under the revaluation model, the carrying amount of property, plant, and equipment is its fair value plus any subsequent accumulated depreciation less any subsequent impairment losses.

A franchise should be classified on the balance sheet as a(n)

A long-lived asset must be fully depreciated before it can be removed from the books.

Under the double diminishing-balance method, the depreciation rate used each year remains constant.

If disposal of a long-lived asset occurs during the year, depreciation is

An impairment loss can only occur in long-lived assets with a finite life.

A company purchases a remote site building for computer operations. The building will be suitable for operations after some expenditures. The wiring must be replaced to computer specifications. The roof is leaky and must be replaced. All rooms must be repainted and re-carpeted and there will also be some plumbing work done. Which of the following statements is true?

When there is a change in the useful life of an asset, depreciation must be revised if you are using

Residual value is NOT depreciated, since the amount is expected to be recovered at the end of the asset's useful life.

Depreciation is a process of

Depreciation is a process of cost allocation.

Depreciation is the process of allocating the cost of a long-lived asset (such as property, plant, and equipment) over its service life in a(n)