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Costs incurred subsequent to the acquisition of an asset are capitalized if they




Costs incurred subsequent to the acquisition of an asset are capitalized if they provide future benefits.;a. True;b. False;Question 2 (10 points);Improvements are often referred to as betterments and involve the substitution of a better asset for the one currently used.;a. True;b. False;Question 3 (10 points);Changes in estimates are handled prospectively by dividing the asset?s book value less any salvage value by the remaining estimated life.;a. True;b. False;Question 4 (10 points);An impairment loss is the amount by which the carrying amount of the asset exceeds the sum of the expected future net cash flows from the use of that asset.;a. True;b. False;Question 5 (10 points);The cost of acquiring a customer list from another company is recorded as an intangible asset.;a. True;b. False;Question 6 (10 points);True no-par stock should be carried in the accounts at issue price without any additional paid-in capital reported.;a. True;b. False;Question 7 (10 points);The cost of purchased patents should be amortized over the remaining legal life of the patent.;a. True;b. False;Question 8 (10 points);Stock splits and large stock dividends have the same effect on a company?s retained earnings and total stockholders? equity.;a. True;b. False;Question 9 (10 points);Companies recognize a gain or loss when stockholders exercise convertible preferred stock.;a. True;b. Fasle;Question 10 (10 points);If a stock dividend occurs after year-end, but before issuing the financial statements, a company must restate the weighted-average number of shares outstanding for the year.;a. True;b. False


Paper#27272 | Written in 18-Jul-2015

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