Ready to test your Knowledge?
Try out our new practice tests completely free!
exam preparation banner icon

Financial Accounting Study Set 21

Business

Quiz 8 :

Long-Term Assets

Quiz 8 :

Long-Term Assets

search
arrow
The cash inflows generated from a long-term asset will be received over several future periods.
Free
True False
Answer:

Answer:

True

arrow
Depreciation expense is a measure of an asset's increase in value due to wear and tear.
Free
True False
Answer:

Answer:

False

arrow
In a basket purchase,the total purchase price is divided equally among the assets acquired.
Free
True False
Answer:

Answer:

False

arrow
Under ASPE,property,plant,and equipment must be recognized using the revaluation model.
True False
Answer:
arrow
Depreciation is a cost allocation method and has nothing to do with determining an asset's market value.
True False
Answer:
arrow
In 2020 as part of a property purchase,Melrose Ltd.incurred and paid 2019 property taxes.These costs should be
Multiple Choice
Answer:
arrow
If a company determines that due to damage,the recoverable cost of its asset is reduced,it increases accumulated depreciation.
True False
Answer:
arrow
Which of the following would not be classified as property,plant,and equipment?
Multiple Choice
Answer:
arrow
Capital assets include all of the following except for
Multiple Choice
Answer:
arrow
Basic research costs that occur prior to any decision to develop a product or process are usually capitalized.
True False
Answer:
arrow
Which of the following is not a tangible capital asset?
Multiple Choice
Answer:
arrow
An impairment loss should be recognized if the net recoverable amount of the asset exceeds the carrying value.
True False
Answer:
arrow
Upon the disposal of an asset,if the carrying value is NOT equal to the proceeds,a gain or loss must be recognized.
True False
Answer:
arrow
The total accumulated depreciation on a long-term asset is also known as the asset's amortized cost.
True False
Answer:
arrow
The only long-term asset that cannot be separated from the business and sold is
Multiple Choice
Answer:
arrow
Residual value directly enters into the calculation of depreciation expense under all depreciation methods.
True False
Answer:
arrow
Which of the following would not be capitalized as part of a purchased asset's cost?
Multiple Choice
Answer:
arrow
Barium Corp.purchased a piece of equipment on September 30 for $27,000.It cost $400 to ship the equipment to the company's facilities and another $1,000 to install the equipment.After the equipment was installed the company had to pay an additional $1,500 for increased insurance.The capitalized cost of the equipment was
Multiple Choice
Answer:
arrow
All patents have useful and economic lives of 20 years.
True False
Answer:
arrow
Internally generated goodwill may be capitalized annually.
True False
Answer:
Showing 1 - 20 of 78