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accounting quiz two




1. Which of the following expenditures would NOT be included in the cost of an asset? (Points: 2);Freight costs;Vandalism;Sales tax;Surveying fees;Question 2.2. Expenditures that add to the utility of fixed assets for more than one accounting period are (Points: 2);committed expenditures.;revenue expenditures.;current expenditures.;capital expenditures.;Question 3.3. Depreciable cost equals (Points: 2);cost less accumulated depreciation.;book value less residual value.;cost less residual value.;market value less residual value.;Question 4.4. The process of transferring the cost of metal ores and other minerals removed from the earth to an expense account is called (Points: 2);depletion.;deferral.;amortization.;depreciation.;Question 5.5. To measure depreciation, all of the following must be known EXCEPT (Points: 2);market value.;residual value.;historical cost.;estimated life.;Question 6.6. If a fixed asset with an original cost of $18,000 and accumulated depreciation of $12,000 is sold for $15,000, the company must (Points: 2);recognize a loss on the income statement under other expenses.;recognize a loss on the income statement under operating expenses.;recognize a gain on the income statement under other revenues.;Gains and losses are not to be recognized upon the sell of fixed assets.;Question 7.7. Goodwill is (Points: 2);amortized similar to other intangibles.;only written down if an impairment in value occurs.;charged to expense immediately.;amortized over 40 years or its economic life, whichever is shorter.;Question 8.8. Which of the following intangible assets are amortized over their useful life? (Points: 2);Trademarks;Goodwill;Patents;All of the above;Question 9.9. A company purchased an oil well for $25 million with a residual value of $500,000. It is estimated that 10 million barrels can be extracted from the well. Determine depletion expense assuming 3 million barrels are extracted and sold. (Points: 2);$7,350,000;$7,500,000;$5,000,000;$7,650,000;Question 10.10. A gain is recorded on the sale of a fixed asset when (Points: 2);the asset is sold for a price less than its book value;the asset is sold for a price more than its book value;accumulated depreciation on asset is less than its selling price;accumulated depreciation on asset is more than its selling price


Paper#81774 | Written in 18-Jul-2015

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