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A main accounting issue for plant assets is:




1. A main accounting issue for plant assets is;A) Computing the cost of the plant assets.;B) Matching the costs of plant assets against revenues for the periods they benefit.;C) Accounting for repairs and improvements to plant assets.;D) The disposal of plant assets.;E) All of the above.;2. Nelson Company purchased equipment on July 1 for $27,500 and decided to depreciate the equipment on the straight-line method over its useful life of five years. Assuming the equipment's salvage value is $3,500, the amount of monthly depreciation expense Nelson should recognize is;A) $2,400;B) $200;C) $4,800;D) $400;E) $450;3. A company shows a $600 balance in Prepaid Insurance in the Unadjusted Trial Balance columns of the work sheet. The Adjustments columns show expired insurance of $200. This adjusting entry results in;A) $200 less in net income.;B) $200 more in net income.;C) $200 difference between the debit and credit columns of the Unadjusted Trial Balance.;D) $200 of prepaid insurance.;E) An error in the financial statements.;4. A company borrowed $10,000 by signing a 180-day promissory note at 11%. The total interest due on the maturity date is.;A) $50;B) $275;C) $550;D) $825;E) $1,100


Paper#24760 | Written in 18-Jul-2015

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