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UOP Acct 211 All Four Quizzes (2014 Spring) Graded




Question;UOP Acct 211 Quiz 1 (2014 Spring)1.award:3 out of3.00 pointsThe rule that requires financial statements to reflect the assumption that the business will continue operating instead of being closed or sold, unless evidence shows that it will not continue, is the:Going-concern assumption.Business entity assumption.Objectivity principle.Cost Principle.Monetary unit assumption.2.award:3 out of3.00 pointsA partnership:Is also called a sole proprietorship.Has unlimited liability for its partners.Has to have a written agreement in order to be legal.Is a legal organization separate from its owners.Has owners called shareholders.3.award:3 out of3.00 pointsThe difference between a company's assets and its liabilities, or net assets is:Net income.Expense.Equity.Revenue.Net loss.4.award:3 out of3.00 pointsWhich of the following accounting principles prescribes that a company record its expenses incurred to generate the revenue reported?Going-concern assumption.Matching principle.Cost principle.Business entity assumption.Consideration assumption.5.award:3 out of3.00 pointsThe primary objective of financial accounting is:To serve the decision-making needs of internal users.To provide financial statements to help external users analyze an organization's activities.To monitor and control company activities.To provide information on both the costs and benefits of looking after products and services.To know what, when, and how much to produce.6.award:0 out of3.00 pointsAll of the following are true regarding ethics except:Ethics are beliefs that separate right from wrong.Ethics rules are often set for CPAs.Ethics do not affect the operations or outcome of a company.Are critical in accounting.Ethics can be hard to apply.7.award:3 out of3.00 pointsSocial responsibility:Is a concern for the impact of our actions on society.Is a code that helps in dealing with confidential information.Is required by the SEC.Requires that all businesses conduct social audits.Is limited to large companies.8.award:3 out of3.00 pointsThe accounting principle that requires accounting information to be based on actual cost and requires assets and services to be recorded initially at the cash or cash-equivalent amount given in exchange, is the:Accounting equation.Cost principle.Going-concern assumption.Realization principle.Business entity assumption.9.award:3 out of3.00 pointsAll of the following regarding a Certified Public Accountant are true except:Must meet education and experience requirements.Must pass an examination.Must exhibit ethical character.May also be a Certified Management Accountant.Cannot hold any certificate other than a CPA.10.award:3 out of3.00 pointsDecreases in equity that represent costs of assets or services used to earn revenues are called:Liabilities.Equity.Withdrawals.Expenses.Owner's Investment.11.award:3 out of3.00 pointsThe record in which transactions are first recorded is the:Account balance.Ledger.Journal.Trial balance.Cash account.12.award:3 out of3.00 pointsA collection of all accounts and their balances used by a business is called a:Journal.Book of original entry.General Journal.Balance column journal.Ledger.13.award:3 out of3.00 pointsA ledger is:A record containing increases and decreases in a specific asset, liability, equity, revenue, or expense item.A journal in which transactions are first recorded.A collection of documents that describe transactions and events entering the accounting process.A list of all accounts with their debit balances at a point in time.A record containing all accounts and their balances used by a company.14.award:3 out of3.00 pointsThe account used to record the transfers of assets from a business to its owner is:A revenue account.The owner's withdrawals account.The owner's capital account.An expense account.A liability account.15.award:3 out of3.00 pointsIf the Debit and Credit column totals of a trial balance are equal, then:All transactions have been recorded correctly.All entries from the journal have been posted to the ledger correctly.All ledger account balances are correct.The total debit entries and total credit entries are equal.The balance sheet would be correct.16.award:3 out of3.00 pointsSource documents:Include the ledger.Are the sources of accounting information.Must be in electronic form.Are based on accounting entries.Include the chart of accounts.17.award:3 out of3.00 pointsA report that lists accounts and their balances, in which the total debit balances should equal the total credit balances, is called a(n):Account balance.Trial balance.Ledger.Chart of accounts.General Journal.18.award:3 out of3.00 pointsAn asset created by prepayment of an expense is:Recorded as a debit to an unearned revenue account.Recorded as a debit to a prepaid expense account.Recorded as a credit to an unearned revenue account.Recorded as a credit to a prepaid expense account.Not recorded in the accounting records until the earnings process is complete19.award:3 out of3.00 pointsA record in which the effects of transactions are first recorded and from which transaction amounts are posted to the ledger is a(n):Account.Trial balance.Journal.T-account.Balance column account.20.award:3 out of3.00 pointsA balance column ledger account is:An account entered on the balance sheet.An account with debit and credit columns for posting entries and another column for showing the balance of the account after each entry is posted.Another name for the withdrawals account.An account used to record the transfers of assets from a business to its owner.A simple form of account that is widely used in accounting to illustrate the debits and credits required in recording a transaction.21.award:4 out of4.00 pointsFinancial statements are typically prepared in the following order:Balance sheet, statement of owner's equity, income statement.Statement of owner's equity, balance sheet, income statement.Income statement, balance sheet, statement of owner's equity.Income statement, statement of owner's equity, balance sheet.Balance sheet, income statement, statement of owner's equity22.award:4 out of4.00 pointsAssuming unearned revenues are originally recorded in balance sheet accounts, the adjusting entry to record earning of unearned revenue is:Increase an expense, increase a liability.Increase an asset, increase revenue.Decrease a liability, increase revenue.Increase an expense, decrease an asset.Increase an expense, decrease a liability.23.award:4 out of4.00 pointsAdjusting entries made at the end of an accounting period accomplish all of the following except:Updating liability and asset accounts to their proper balances.Assigning revenues to the periods in which they are earned.Assigning expenses to the periods in which they are incurred.Assuring that financial statements reflect the revenues earned and the expenses incurred.Assuring that external transaction amounts remain unchanged.24.award:4 out of4.00 pointsPrepaid expenses, depreciation, accrued expenses, unearned revenues, and accrued revenues are all examples of:Items that require contra accounts.Items that require adjusting entries.Asset and equity.Asset accounts.Income statement accounts.25.award:4 out of4.00 pointsThe difference between the cost of an asset and the accumulated depreciation for that asset is calledDepreciation Expense.Unearned Depreciation.Prepaid Depreciation.Depreciation Value.Book Value.26.award:4 out of4.00 pointsA balance sheet that places the liabilities and equity to the right of the assets is a(n):Account form balance sheet.Report form balance sheet.Interim balance sheet.Classified balance sheet.Unclassified balance sheet.27.award:4 out of4.00 pointsThe length of time covered by a set of periodic financial statements is referred to as the:Fiscal cycle.Natural business year.Accounting period.Business cycle.Operating cycle.28.award:4 out of4.00 pointsThe main purpose of adjusting entries is to:Record external transactions and events.Record internal transactions and events.Recognize assets purchased during the period.Recognize debts paid during the period.Correct errors.29.award:4 out of4.00 pointsAdjusting entries:Affect only income statement accounts.Affect only balance sheet accounts.Affect both income statement and balance sheet accounts.Affect only cash flow statement accounts.Affect only equity accounts.30.award:4 out of4.00 pointsA trial balance prepared before any adjustments have been recorded is:An adjusted trial balance.Used to prepare financial statements.An unadjusted trial balance.Correct with respect to proper balance sheet and income statement amounts.Only prepared once a year.*************************************************************************UOP Acct 211 Quiz 1 Spring 2014 (Graded)1.award:3 out of3.00 pointsWhen purchase costs of inventory regularly decline, which method of inventory costing will yield the lowest cost of goods sold?FIFO.LIFO.Weighted average.Specific identification.Gross margin.2.award:3 out of3.00 pointsSome companies choose to avoid assigning incidental costs of acquiring merchandise to inventory by recording them as expenses when incurred. The argument that supports this is called:The matching principle.The materiality constraint.The cost principle.The conservation constraint principle.The lower of cost or market principle.3.award:3 out of3.00 pointsAn error in the period-end inventory causes an offsetting error in the next period and therefore:Managers can ignore the error.It is sometimes said to be self-correcting.It affects only income statement accounts.If affects only balance sheet accounts.Is immaterial for managerial decision making.4.award:3 out of3.00 pointsManagement decisions in accounting for inventory cost include all of the following except:Costing method.Inventory system (perpetual or periodic).Customer demand for inventory.Use of market values or other estimates.Items included in inventory and their costs.5.award:3 out of3.00 pointsGenerally accepted accounting principles require that the inventory of a company be reported at:Market value.Historical cost.Lower of cost or market.Replacement cost.Retail value.6.award:3 out of3.00 pointsIn applying the lower of cost or market method to inventory valuation, market is defined as:Historical cost.Current replacement cost.Current sales price.FIFO.LIFO.7.award:3 out of3.00 pointsThe inventory valuation method that has the advantages of assigning an amount to inventory on the balance sheet that approximates its current cost, and also mimics the actual flow of goods for most businesses is:FIFO.Weighted average.LIFO.Specific identification.All of the inventory valuation methods accomplish this.8.award:3 out of3.00 pointsInternal controls that should be applied when a business takes a physical count of inventory should include all of the following except:Prenumbered inventory tickets.A manager does not confirm that all inventories are ticketed once, and only once.Counters must confirm the validity of inventory existence, amounts, and quality.Second counts by a different counter.Counters of inventory should not be those who are responsible for the inventory.9.award:0 out of3.00 pointsDamaged and obsolete goods that can be sold:Are never counted as inventory.Are included in inventory at their full cost.Are included in inventory at their net realizable value.Should be disposed of immediately.Are assigned a value of zero.10.award:3 out of3.00 pointsCosts included in the Merchandise Inventory account can include all of the following except:Invoice price minus any discount.Transportation-in.Storage.Insurance.Damaged inventory that cannot be sold11.award:3 out of3.00 pointsThe operating cycle for a merchandiser that sells only for cash moves from:Purchases of merchandise to inventory to cash sales.Purchases of merchandise to inventory to accounts receivable to cash sales.Inventory to purchases of merchandise to cash sales.Accounts receivable to purchases of merchandise to inventory to cash sales.Accounts receivable to inventory to cash sales.12.award:3 out of3.00 pointsThe gross margin ratio:Is also called the net profit ratio.Measures a merchandising firm's ability to earn a profit from the sale of inventory.Is also called the profit margin.Is a measure of liquidity.Should be greater than 1.13.award:3 out of3.00 pointsAn account used in the periodic inventory system that is not used in the perpetual inventory system isMerchandise InventorySalesSales Returns and AllowancesAccounts PayablePurchases14.award:3 out of3.00 pointsThe current period's ending inventory is:The next period's beginning inventory.The current period's cost of goods sold.The prior period's beginning inventory.The current period's net purchases.The current period's beginning inventory.15.award:3 out of3.00 pointsLiquidity problems are likely to exist when a company's acid-test ratio:Is less than the current ratio.Is 1 to 1.Is higher than 1 to 1.Is substantially lower than 1 to 1.Is higher than the current ratio.16.award:3 out of3.00 pointsThe following statements regarding gross profit are true except:Gross profit is also called gross margin.Gross profit less other operating expenses equals income from operations.Gross profit is not calculated on the multiple-step income statement.Gross profit must cover all operating expenses to yield a return for the owner of the business.Gross profit equals net sales less cost of goods sold.17.award:3 out of3.00 pointsA debit memorandum is:Required whenever a journal entry is recorded.The source document for the purchase of merchandise inventory.Required when a purchase discount is granted.The document a buyer issues to inform the seller of a debit made to the seller's account in the buyer's records.Not necessary in a perpetual inventory system.18.award:0 out of3.00 pointsAll of the following statements related to U.S. GAAP and IFRS are true except:Accounting for basic inventory transactions is the same under the two systems.The closing process for merchandisers is the same under both systems.U.S. GAAP offers little guidance about the presentation order of expenses.Neither system requires separate disclosure of items when their size, nature, or frequency are important for proper interpretation.Neither system defines operating income.19.award:3 out of3.00 pointsBeginning inventory plus net purchases is:Cost of goods sold.Merchandise available for sale.Ending inventory.Sales.Shown on the balance sheet.20.award:3 out of3.00 pointsAll of the following statements regarding sales returns and allowances are true except:Sales returns and allowances can include a reduction is the selling price because of damaged merchandise.Sales returns and allowances do not reflect the possibility of lost future sales.Sales returns and allowances are recorded in a separate contra-revenue account.Sales returns and allowances are rarely disclosed in published financial statements.Sales returns and allowances are closed to the Income Summary account.21.award:4 out of4.00 pointsA columnar working paper used to prepare a company's unadjusted trial balance, adjusting entries, adjusted trial balance, and financial statements, and which is an optional tool in the accounting process is a(n):Adjusted trial balance.Work sheet.Post-closing trial balance.Unadjusted trial balance.General ledger.22.award:4 out of4.00 pointsAn error is indicated if the following account has a balance appearing on the post-closing trial balance:Office Equipment.Accumulated Depreciation-Office Equipment.Depreciation Expense-Office Equipment.Ted Nash, Capital.Salaries Payable.23.award:4 out of4.00 pointsWhich of the following statements is true?Owner's capital must be closed each accounting period.A post-closing trial balance should include only permanent accounts.Information on the work sheet can be used in place of preparing financial statements.By using a work sheet to prepare adjusting entries you need not post these entries to the ledger accounts.Closing entries are only necessary if errors have been made.24.award:4 out of4.00 pointsThe special account used only in the closing process to temporarily hold the amounts of revenues and expenses before the net difference is added to (or subtracted from) the owner's capital account is the:Income Summary account.Closing account.Balance column account.Contra account.Nominal account.25.award:4 out of4.00 pointsIf in preparing a work sheet an adjusted trial balance amount is mistakenly sorted to the wrong work sheet column. The Balance Sheet columns will balance on completing the work sheet but with the wrong net income, if the amount sorted in error is:An expense amount placed in the Balance Sheet Credit column.A revenue amount placed in the Balance Sheet Debit column.A liability amount placed in the Income Statement Credit column.An asset amount placed in the Balance Sheet Credit column.A liability amount placed in the Balance Sheet Debit column.26.award:4 out of4.00 pointsA post-closing trial balance reports:All ledger accounts with balances, none of which can be temporary accounts.All ledger accounts with balances, none of which can be permanent accounts.All ledger accounts with balances, which include some temporary and some permanent accounts.Only revenue and expense accounts.Only asset accounts.27.award:4 out of4.00 pointsThe balances in the unadjusted columns of a work sheet will agree with:the balances reflected in the company's financial statements.the balances reflected in the company's unadjusted trial balance.whatever balances management has decided to report.the balances in the company's post-closing trial balance.the balances management budgeted for the accounting period.28.award:4 out of4.00 pointsTemporary accounts include all of the following except:Consulting revenue.Withdrawals.Rent expense.Prepaid rent.Income Summary.29.award:4 out of4.00 pointsAnother name for temporary accounts is:Real accounts.Contra accounts.Accrued accounts.Balance column accounts.Nominal accounts.30.award:4 out of4.00 pointsA trial balance prepared after the closing entries have been journalized and posted is the:Unadjusted trial balance.Post-closing trial balance.General ledger.Adjusted trial balance.Work sheet.*****************************************************************UOP Acct 211 Quiz 3 Spring 2014 (Graded)1.award:3 out of3.00 pointsAssume that a company using a purchases journal made an error in totaling the journal's accounts payable column. The error should be discovered:When the purchases journal is posted to the general ledger.When the sum of the vendor accounts does not equal the balance in the Purchases journal.When the total of the schedule of accounts payable is compared with the balance of the Accounts Payable account.When the creditors receive their payments.When the financial statements are prepared.2.award:3 out of3.00 pointsA subsidiary ledger that contains a separate account for each supplier (creditor) to the company is a(n):Controlling account.Accounts receivable ledger.Accounts payable ledger.General ledger.Special journal.3.award:3 out of3.00 pointsSubsidiary ledgers do all of the following except:Remove excessive detail from the general ledger.Provide up-to-date information on customer or other specific account balances.Aid in error identification for individual accounts.Help with division of labor (recordkeeping tasks).Eliminate the need for individual postings to the customer or supplier accounts4.award:3 out of3.00 pointsThe sales journal is used for recording:Credit purchases.Credit sales.Cash sales.Cash purchases.Cash receipts.5.award:3 out of3.00 pointsA company received payment of $9,800 from a customer within the discount period. Identify the journal the transaction would be recorded in.Cash disbursements journal.Sales journal.Cash receipts journal.Purchases journal.General journal.6.award:3 out of3.00 pointsAll of the following statements regarding accounting information systems are true except:Accounting information systems collect and process data from transactions and events.Accounting information systems organize data in useful forms.Accounting information systems do not establish internal control procedures.Accounting information systems are crucial to effective decision making.Accounting information systems communicate information to business decision makers.7.award:3 out of3.00 pointsAssume that a company uses a sales journal, a purchases journal, a cash receipts journal, a cash disbursements journal, and a general journal. A sales return for credit on account would be recorded in the:Sales journal.General journal.Cash receipts journal.Accounts receivable ledger.Cash disbursements journal.8.award:3 out of3.00 pointsThe control principle for accounting information systems requires that the:Benefits from an activity outweigh the costs of the activity.System report useful, understandable, timely, and pertinent information for effective decision making.System must have internal controls.System adapts to changes in the company, business environment, and needs of decision makers.System conforms to a company's activities, personnel, and structure.9.award:3 out of3.00 pointsAn accounts receivable ledger is:A subsidiary ledger that contains an account for each credit customer.A list of the balances of selected accounts in the accounts receivable ledger that is added to show the total amount of the significant accounts receivable outstanding.A book of original entry that is designed and used for recording only a specified type of transaction.The ledger that contains the financial statement accounts of a business.A subsidiary ledger that contains a separate account for each creditor (supplier) to the company.10.award:3 out of3.00 pointsInformation processors:Include information storage.Interpret, transform, and summarize information for use in analysis and reporting.Are components of an accounting system that keep data in accessible form.Are the means to take information out of an accounting system and make it available to users.Include scanners.11.award:3 out of3.00 pointsOutstanding checks refer to checks that have been:Written, recorded, sent to payees, and received and paid by the bank.Written and not yet recorded in the company books.Held as blank checks.Written, recorded on the company books, sent to the payee, but have not yet been paid by the bank.Issued by the bank.12.award:3 out of3.00 pointsAn expense resulting from failing to take advantage of cash discounts on purchases is called:Sales discounts.Trade discounts.Purchases discounts.Discounts lost.Discounts earned.13.award:3 out of3.00 pointsA remittance advice is:An explanation for a payment by check.A bank statement.A voucher.An EFT.A cancelled check.14.award:3 out of3.00 pointsOn a bank reconciliation, an unrecorded debit memorandum for printing checks is:Noted as a memorandum only.Added to the book balance of cash.Deducted from the book balance of cash.Added to the bank balance of cash.Deducted from the bank balance of cash.15.award:3 out of3.00 pointsWhich of the following events would cause a bank to debit a depositor's account?The depositor authorizes the bank to charge the depositor's account $50 for new checks.The bank collects a note receivable and related interest on the depositor's behalf.The depositor determines there are outstanding checks drawn on the account at month-end.The depositor determines there are deposits in transit on the account at month-end.The bank determines it incorrectly charged the depositor's account twice for the monthly service charge in a previous month.16.award:3 out of3.00 pointsThe impact of technology on internal controls includes:Reduced processing errors.Elimination of the need for regular audits.Elimination of the need to bond employees.Elimination of separation of duties.Elimination of fraud.17.award:3 out of3.00 pointsA company made a bank deposit on September 30 that did not appear on the bank statement dated as of September 30. In preparing the September 30 bank reconciliation, the company should:Deduct the deposit from the bank statement balance.Send the bank a debit memorandum.Deduct the deposit from the September 30 book balance and add it to the October 1 book balance.Add the deposit to the book balance of cash.Add the deposit to the bank statement balance.18.award:3 out of3.00 pointsManagers place a high priority on internal control systems for all of the reasons listed below except:rev: 11_18_2013_QC_40260Prevention of avoidable losses.Planning of operations.Monitoring of company performance.Monitoring of employee performance.Assurance that no loss will occur.19.award:3 out of3.00 pointsInternal control systems are:Developed by the Securities and Exchange Commission for public companies.Developed by the Small Business Administration for non-public companies.Developed by the Internal Revenue Service for all U.S. companies.Required by Sarbanes-Oxley (SOX) to be documented and certified if the company's stock is traded on an exchange.Required only if a company plans to engage in interstate commerce.20.award:3 out of3.00 pointsThe gross method of recording purchases refers to the method of recording:Purchases at the invoice price less any cash discounts.Specified amounts and timing of payments that a buyer agrees to make in return for being granted credit.Purchases at the full invoice price, without deducting any cash discounts.Inventory at its selling price.Inventory at the lower of cost or market.21.award:4 out of4.00 pointsFailure by a promissory notes' maker to pay the amount due at maturity is known as:Protesting a note.Closing a note.Dishonoring a note.Discounting a note.Depreciating a note.22.award:4 out of4.00 pointsAll of the following statements regarding recognition of receivables under U.S. GAAP and IFRS are true except:U.S. GAAP and IFRS have similar asset criteria that apply to recognition of receivables.Receivables that arise from revenue-generating activities are subject to broadly similar criteria for U.S. GAAP and IFRS.The realization principle under IFRS implies an arm's length transaction occurs.Both refer to the realization principle and an earnings process.Differences arise mainly from industry-specific guidance under U.S. GAAP23.award:4 out of4.00 pointsThe matching principle prescribes:That expenses be ignored if their effect on the financial statements is unimportant to users' business decisions.The use of the direct write-off method for bad debts.The use of the allowance method of accounting for bad debts.That bad debts be disclosed in the financial statements.That bad debts not be written off.24.award:4 out of4.00 pointsThe quality of receivables refers to:The creditworthiness of sellers.The speed of collection.The likelihood of collection without loss.Sales turnover.The interest rate.25.award:4 out of4.00 pointsAll of the following are true regarding credit card expense except:Credit card expense may be classified as a "discount" deducted from sales to get net sales.Credit card expense may be classified as a selling expense.Credit card expense may be classified as an administrative expense.Credit card expense is not recorded by the seller.Credit card expense is a fee the seller pays for services provided by the card company26.award:4 out of4.00 pointsThe account receivable turnover measures:How long it takes to sell accounts receivable to a factor.How often, on average, receivables are received and collected during the period.The relation of cash sales to credit sales.How long it takes to sell merchandise inventory.All of the options are correct.27.award:4 out of4.00 pointsThe buyer who purchases and takes ownership of another company's accounts receivable is called a:Payer.Pledger.Factor.Payee.Pledgee28.award:4 out of4.00 pointsUnder IFRS, the term provision:Refers to expense.Usually refers to a liability whose amount or timing is uncertain.Means establishing a provision for bad debts.Means establishing a contra-asset account.Means establishing an asset account.29.award:4 out of4.00 pointsThe person who signs a note receivable and promises to pay the principal and interest is the:Maker.Payee.Holder.Receiver.Owner.30.award:4 out of4.00 pointsAn accounting procedure that (1) estimates and reports bad debts expense from credit sales during the period the sales are recorded, and (2) reports accounts receivable at the estimated amount of cash to be collected is the:Allowance method of accounting for bad debts.Aging of notes receivable.Adjustment method for uncollectible debts.Direct write-off method of accounting for bad debts.Cash basis method of accounting for bad debts.*******************************************************UOP Acct 211 Quiz 4 Spring 2014 (Graded) with 100% Correct Answers1.award:3 out of3.00 pointsA patent:Gives its owner the exclusive right to publish and sell a musical or literary work during the life of the creator plus 70 years.Gives its owner an exclusive right to manufacture and sell a patented item or to use a process for 20 years.Gives its owner an exclusive right to manufacture and sell a device or to use a process for 50 years.Is the amount by which the value of a company exceeds the fair market value of a company's net assets if purchased separately.Gives its owner the exclusive right to publish and sell a musical or literary work during the life of the creator plus 17 years.2.award:3 out of3.00 pointsA total asset turnover ratio of 3.5 indicates that:For every $1 in sales, the firm acquired $3.50 in assets during the period.For every $1 in assets, the firm produced $3.50 in net sales during the period.For every $1 in assets, the firm earned gross profit of $3.50 during the period.For every $1 in assets, the firm earned $3.50 in net income.For every $1 in assets, the firm paid $3.50 in expenses during the period.3.award:3 out of3.00 pointsTotal asset turnover is used to evaluate:The efficiency of management's use of assets to generate sales.The necessity for asset replacement.The number of times operating assets were sold during the year.The cash flows used to acquire assets.The relation between asset cost and book value.4.award:3 out of3.00 pointsThe formula for computing annual straight-line depreciation is:Depreciable cost divided by useful life in units.Cost plus salvage value divided by the useful life in years.Cost less salvage value divided by the useful life in years.Cost multiplied by useful life in years.Cost divided by useful life in units.5.award:3 out of3.00 pointsDepreciation:Measures the decline in market value of an asset.Measures physical deterioration of an asset.Is the process of allocating to expense the cost of a plant asset.Is an outflow of cash from the use of a plant asset.Is applied to land.6.award:3 out of3.00 pointsNatural resources:Include standing timber, mineral deposits, and oil and gas fields.Are also called wasting assets.Are long-term assets.Are depleted.All of the choices are correct.7.award:3 out of3.00 pointsAn asset can be disposed of by:Discarding it.Selling it.Exchanging it for another asset.Donating it to charity.All of these are possible ways to dispose an asset.8.award:3 out of3.00 pointsA copyright:Gives its owner the exclusive right to publish and sell a musical or literary work during the life of the creator plus 70 years.Gives its owner an exclusive right to manufacture and sell a patented item or to use a process for 20 years.Gives its owner an exclusive right to manufacture and sell a device or to use a process for 50 years.Is the amount by which the value of a company exceeds the fair market value of a company's net assets if purchased separately.Gives its owner the exclusive right to publish and sell a musical or literary work during the life of the creator plus 20 years.9.award:3 out of3.00 pointsA depreciation method in which a plant asset's depreciation expense for a period is determined by applying a constant depreciation rate to the asset's beginning-of-period book value is called:Book value depreciation.Declining-balance depreciation.Straight-line depreciation.Units-of-production depreciation.Modified accelerated cost recovery system (MACRS) depreciation.10.award:3 out of3.00 pointsGoodwill:Is not amortized, but is tested annually for impairment.Is amortized using the straight-line method.Is amortized using the units-of-production method.May be amortized using either the straight-line or units-of-production method.Is never amortized or tested for impairment.11.award:4 out of4.00 pointsDisadvantages of a partnership include:Limited life.Mutual agency.Unlimited liability.Co-ownership of property.All of the choices are disadvantages.12.award:4 out of4.00 pointsA partnership agreement:Is not binding unless it is in writing


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