Identify the appropriate accounting treatment for each of the payments listed below using the following code:
C = Capitalize
E = Expense
N = Neither of the above
______ 1.A payment for service that maintains the working condition of a truck
______ 2.A payment for service that adds 3 years of useful life to a machine
______ 3.A payment that reduces a liability
______ 4.A payment of cash to the owners of the business
______ 5.A payment to buy an asset with a 5-year estimated useful life
______ 6.A payment to install the asset with a 5-year estimated useful life
______ 7.A payment to increase the speed of a cutting machine used in production
______ 8.A payment to decrease the cost of operating a metal molding machine
______ 9.A monthly payment to tune-up and lubricate factory equipment
______ 10.A payment to change the rubber belts on the factory conveyor system
Correct Answer:
Verified
Q99: All long-term assets are tangible.
Q100: Explain why certain long-term assets are depreciated,amortized,or
Q101: Queue,Incorporated incurred the following expenditures for the
Q102: When a long-term asset is sold,both its
Q103: Identify the appropriate accounting treatment for each
Q105: A loss on the sale of a
Q106: DFS Company sold an asset for $8,500
Q107: A loss is a _.
A)reduction in liabilities
B)reduction
Q108: Put an X in the appropriate box
Q109: On January 1 2010,Max,Inc.paid $80,000 for a
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents