Assets, Accounting

Assets

Question: Erin Danielle Company purchase equipment and incurred the following costs.
Cash price $24,000
Sales taxes $1,200
Insurance during transit $200
Installation and testing $400
Total Costs $25,800
What amount should be recorded as the cost of the equipment?
A
$24,000

B
$25,200

C
$25,400

D
$25,800

Note: Not available
1. Report
Question: Depreciation is a process of:
A
valuation.

B
cost allocation.

C
cash accumulation.

D
appraisal

Note: Not available
1. Report
Question: Micah Barlett Company purchase equipment on Janurary 1,2001, at a total invoice cost $400,000. The equipment has an estimated salvage value of $10,000 and an estimated useful life of 5 years. The amount of accumulated depreciation at December 31, 2002, if the straight line method of depreciation is used is:
A
$80,000

B
$160,000

C
$78,000

D
$156,000

Note: Not available
1. Report
Question: Ann Torbert purchase a truck for $11,000 on January 1, 2001. The truck will have an estimated salvage value of $1,000 at the end of 5 years. Using the units-of-activity method, the balance in accumulated depreciation at December 31,2002, can be computed by the following formula:
A
($11,000 / Total estimated activity) x Units of activity for 2002

B
($10,000 /Total estimated activity) x Units of activity for 2002

C
($11,000 / Total estimated activity) x Units of activity for 2001 and 2002

D
($10,000 / Total estimated activity) x Units of activity for 2001 and 2002

Note: Not available
1. Report
Question: When there is a change in estimated depreciation:
A
previous depreciation should be corrected.

B
current and future year's depreciation should be revised.

C
only future year's depreciation should be revised.

D
None of the above.

Note: Not available
1. Report
Question: Schopenhauer Company exchanged an old machine, with a book value of $39,000 and a fair market value of $35,000 and paid $10,000 cash for a similar new machine. At what amount should be machine acquired in the exchange be recorded on Schopenhauer's books?
A
$45,000

B
$46,000

C
$49,000

D
$50,000

Note: Not available
1. Report
Question: In exchange of similar assets:
A
neither gains nor losses are recognized immediately.

B
gains but not losses, are recognized immediately.

C
losses, but not gains, are recognized immediately.

D
both gains and losses are recognized immediately.

Note: Not available
1. Report
Question: Maggie Sharrer Company expects to extract 20 million tons of coal from a mine that cost $12 million. If no salvage value is expected and 2 million tons are mined and sold in the first year, the entry to record depletion will include a:
A
debit to Accumulated Depletion of $2,000,000.

B
credit to Depletion Expense of $1,200,000.

C
debit to Depletion Expense of $1,200,000

D
credit to Accumulated Depletion of $2,000,000

Note: Not available
1. Report
Question: Martha Beyerlein Company incurred $150,000 of research and development costs in its laboratory to develop a patent granted on January 2, 2002. On July 31,2002, Beyerlein paid $35,000 for legal fees in a successful defense of the patent. The total debited to patents through July 31,2002, should be:
A
$150,000

B
$35,000

C
$185,000

D
some other amount.

Note: Not available
1. Report
Question: Indicate which of the following statements is true.
A
Since intangible assets lack physical substance, they need be disclosed only in the notes to the financial statements.

B
Goodwill should be reported as a contra-account in the owner's equity section.

C
Totals of major classes of assets can be shown in the balance sheet, with asset details disclosed in the notes to the financial statements.

D
Intangible assets are typically combined with plant assets and natural resources and shown in the property, plant and equipment section.

Note: Not available
1. Report

Cash price	$24,000
Sales taxes	$1,200
Insurance during transit	$200
Installation and testing	$400
Total Costs	$25,800

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Question: Erin Danielle Company purchase equipment and incurred the following costs.
Cash price $24,000
Sales taxes $1,200
Insurance during transit $200
Installation and testing $400
Total Costs $25,800
What amount should be recorded as the cost of the equipment?

Question: Depreciation is a process of:

Question: Ann Torbert purchase a truck for $11,000 on January 1, 2001. The truck will have an estimated salvage value of $1,000 at the end of 5 years. Using the units-of-activity method, the balance in accumulated depreciation at December 31,2002, can be computed by the following formula:

Question: When there is a change in estimated depreciation:

Question: Schopenhauer Company exchanged an old machine, with a book value of $39,000 and a fair market value of $35,000 and paid $10,000 cash for a similar new machine. At what amount should be machine acquired in the exchange be recorded on Schopenhauer's books?

Question: In exchange of similar assets:

Question: Maggie Sharrer Company expects to extract 20 million tons of coal from a mine that cost $12 million. If no salvage value is expected and 2 million tons are mined and sold in the first year, the entry to record depletion will include a:

Question: Indicate which of the following statements is true.

Question: Erin Danielle Company purchase equipment and incurred the following costs.Cash price$24,000Sales taxes$1,200Insurance during transit$200Installation and testing$400Total Costs$25,800 What amount should be recorded as the cost of the equipment?

Question: Depreciation is a process of:

Question: Ann Torbert purchase a truck for $11,000 on January 1, 2001. The truck will have an estimated salvage value of $1,000 at the end of 5 years. Using the units-of-activity method, the balance in accumulated depreciation at December 31,2002, can be computed by the following formula:

Question: When there is a change in estimated depreciation:

Question: Schopenhauer Company exchanged an old machine, with a book value of $39,000 and a fair market value of $35,000 and paid $10,000 cash for a similar new machine. At what amount should be machine acquired in the exchange be recorded on Schopenhauer's books?

Question: In exchange of similar assets:

Question: Maggie Sharrer Company expects to extract 20 million tons of coal from a mine that cost $12 million. If no salvage value is expected and 2 million tons are mined and sold in the first year, the entry to record depletion will include a:

Question: Indicate which of the following statements is true.

Question: Erin Danielle Company purchase equipment and incurred the following costs.
Cash price $24,000
Sales taxes $1,200
Insurance during transit $200
Installation and testing $400
Total Costs $25,800
What amount should be recorded as the cost of the equipment?