Accounting 201 - Chapter 7

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Accounting 201 - Chapter 7 - Quiz

There exist two types of assets namely short term and long term assets. In class we have fully covered what is to know about long-term assets and how they are recorded in financial statements. Take up the quiz below and note the key areas you did not understand in class.


Questions and Answers
  • 1. 

    Long-lived tangible assets that are used in the operation of the business are called:

    • A.

      Intangible assets.

    • B.

      Natural resources.

    • C.

      Plant assets.

    • D.

      Goodwill.

    Correct Answer
    C. Plant assets.
    Explanation
    Plant assets are long-lived tangible assets that are used in the operation of a business. These assets include land, buildings, machinery, equipment, vehicles, and furniture. They are used to generate revenue and are expected to provide benefits to the company for more than one year. Intangible assets, on the other hand, are non-physical assets such as patents, trademarks, and copyrights. Natural resources refer to assets like oil, gas, minerals, and timber. Goodwill represents the value of a business's reputation, customer relationships, and brand recognition.

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  • 2. 

    The only plant asset that does not depreciate is:

    • A.

      Office supplies. (not a plant asset)

    • B.

      Furniture.

    • C.

      Land.

    • D.

      Patents.

    Correct Answer
    C. Land.
    Explanation
    Land is the only plant asset that does not depreciate because its value does not decrease over time. Unlike other plant assets such as furniture or patents, land is considered to have an indefinite useful life and its value is expected to remain stable or even appreciate over time. Therefore, it is not subject to depreciation, which is the systematic allocation of the cost of an asset over its useful life.

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  • 3. 

    An asset with no physical form, but that has special rights to current and expected future benefits is a(n):

    • A.

      Intangible asset.

    • B.

      Natural resource.

    • C.

      Plant asset.

    • D.

      Fixed asset.

    Correct Answer
    A. Intangible asset.
    Explanation
    An intangible asset refers to an asset that does not have a physical form but holds special rights to current and expected future benefits. This can include things like patents, trademarks, copyrights, and goodwill. Unlike natural resources, plant assets, and fixed assets, which all have physical forms, intangible assets are characterized by their non-physical nature and their ability to generate economic value for the owner.

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  • 4. 

    Costs that would be included with the purchase of a plant asset are:

    • A.

      The sum of all of the costs incurred to bring the asset to its intended use.

    • B.

      Only costs that exceed a certain amount.

    • C.

      Only the purchase price.

    • D.

      None of the above.

    Correct Answer
    A. The sum of all of the costs incurred to bring the asset to its intended use.
    Explanation
    The correct answer is the sum of all of the costs incurred to bring the asset to its intended use. This means that all costs associated with acquiring, preparing, and getting the plant asset ready for its intended purpose should be included. This includes not only the purchase price, but also any costs for transportation, installation, testing, and any other costs necessary to make the asset ready for use.

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  • 5. 

    Which of the following should be included in the cost of land?

    • A.

      Construction cost of a parking lot

    • B.

      Landscaping

    • C.

      Real estate brokerage commission

    • D.

      Lighting

    Correct Answer
    C. Real estate brokerage commission
    Explanation
    The cost of land typically includes the purchase price of the land itself, as well as any additional costs directly related to acquiring the land. Real estate brokerage commission is a cost that is directly related to acquiring the land, as it is a fee paid to a real estate agent or broker for their services in facilitating the purchase of the land. Therefore, it should be included in the cost of land. The other options listed, such as the construction cost of a parking lot, landscaping, and lighting, are not directly related to acquiring the land and would typically be considered separate costs.

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  • 6. 

    Which of the following should be included in the cost of land?

    • A.

      Costs of grading and clearing the land

    • B.

      Costs of removing an unwanted building

    • C.

      Cost of fencing (land inprovements)

    • D.

      Both A and B

    Correct Answer
    D. Both A and B
    Explanation
    The costs of grading and clearing the land and the costs of removing an unwanted building should be included in the cost of land. These activities are necessary to prepare the land for use and enhance its value. The cost of fencing, although a land improvement, is not directly related to the acquisition of the land itself and should be treated separately. Therefore, the correct answer is both A and B.

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  • 7. 

    Although located on the land, they are subject to decay and their cost is depreciated. This is the definition of:

    • A.

      Land improvement.

    • B.

      Plant and equipment.

    • C.

      a building

    • D.

      land.

    Correct Answer
    A. Land improvement.
    Explanation
    Land improvements refer to enhancements made to land that increase its value, such as adding sidewalks, fences, or landscaping. Although located on the land, these improvements are subject to decay and their cost is depreciated over time. This is different from buildings or plant and equipment, which are separate assets that are also located on the land but have different characteristics and depreciation methods. Therefore, the correct answer is land improvement.

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  • 8. 

    Which of the following should be included in the Machinery account? 

    • A.

      The cost of transporting the machinery to its setup location

    • B.

      The cost of a maintenance insurance plan after the machinery is up and running

    • C.

      The cost of calibrating the machinery after it has been used for a year

    • D.

      The cost of insurance while the machinery is being overhauled

    Correct Answer
    A. The cost of transporting the machinery to its setup location
    Explanation
    The cost of transporting the machinery to its setup location should be included in the Machinery account because it directly relates to the acquisition and installation of the machinery. It is a necessary expense incurred in getting the machinery to its intended location and ready for use.

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  • 9. 

    Morton Corporation purchased equipment for $46,000. Morton also paid $1,200 for freight and insurance while the equipment was in transit. Sales tax amounted to $850. Insurance, taxes and maintenance for the first year of use was $1,000. How much should Morton Corporation capitalize as the cost of the equipment?           

    • A.

      46,000

    • B.

      46,850

    • C.

      $48,050

    • D.

      $49,050

    Correct Answer
    C. $48,050
    Explanation
    Calculations: 46,000+1,200+850=48,050

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  • 10. 

    A company recently purchased a building that it plans to renovate to get ready for use in its operations.  All expenditures to repair and renovate the existing building for its intended use are charged to:

    • A.

      Land.

    • B.

      Land improvements.

    • C.

      Land improvements expense.

    • D.

      Building.

    Correct Answer
    D. Building.
    Explanation
    When a company purchases a building with the intention of renovating it for its operations, all expenditures incurred to repair and renovate the existing building are charged to the "building" account. This is because the company is investing in improving the building itself, not the land on which it is situated. The land account is typically used for the initial purchase of the land, while the building account is used for any subsequent improvements or renovations made to the building structure.

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  • 11. 

    An expenditure that increases an asset’s capacity or efficiency or extends its useful life is a(n):

    • A.

      Capital expenditure.

    • B.

      Expense.

    • C.

      Addition.

    • D.

      Improvement.

    Correct Answer
    A. Capital expenditure.
    Explanation
    A capital expenditure refers to an expense made by a company to acquire, upgrade, or improve an asset. In this case, the expenditure mentioned in the question is one that increases the asset's capacity or efficiency or extends its useful life. Such expenditures are typically categorized as capital expenditures because they contribute to the long-term value and productivity of the asset.

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  • 12. 

    A capital expenditure is:

    • A.

      Debited to an expense account.

    • B.

      Credited to an expense account.

    • C.

      Debited to an asset account.

    • D.

      Debited to a stockholders’ equity account.

    Correct Answer
    C. Debited to an asset account.
    Explanation
    A capital expenditure refers to the purchase or acquisition of a long-term asset that benefits the business over multiple accounting periods. Since assets are resources owned by a company that have future economic value, a capital expenditure is debited to an asset account to record the increase in the company's assets. This helps to accurately reflect the value of the company's resources and ensures that the expenditure is properly accounted for.

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  • 13. 

    Costs that do not extend the asset’s capacity or its useful life, but merely maintain the asset or restore it to working order are recorded as:

    • A.

      Capital expenditures.

    • B.

      Expenses.

    • C.

      Additions.

    • D.

      improvements.

    Correct Answer
    B. Expenses.
    Explanation
    Expenses are costs that are incurred in order to maintain or restore an asset to its working order, without extending its capacity or useful life. These costs are typically recurring and do not result in any significant increase in the value or functionality of the asset. On the other hand, capital expenditures refer to costs that are incurred to acquire, improve, or extend the capacity or useful life of an asset. Therefore, the correct answer is expenses.

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  • 14. 

    The journal entry to record a major expenditure to upgrade equipment that extends its useful life beyond the original estimate would include a:

    • A.

      Credit to Depreciation Expense.

    • B.

      Debit to Equipment.

    • C.

      Debit to Depreciation Expense.

    • D.

      Debit to Repair Expense.

    Correct Answer
    B. Debit to Equipment.
    Explanation
    When a major expenditure is made to upgrade equipment and extend its useful life beyond the original estimate, the journal entry would include a debit to the Equipment account. This is because the expenditure is considered a capital expenditure and should be recorded as an addition to the asset account. The credit to Depreciation Expense is not necessary as the useful life of the equipment has been extended, and there is no need to recognize additional depreciation expense at this time. The debit to Depreciation Expense and debit to Repair Expense are not applicable in this situation.

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  • 15. 

    Capital expenditures are not immediately expensed because these items:

    • A.

      Do not extend the life of an asset.

    • B.

      Return an asset to its prior condition.

    • C.

      Increase the asset’s capacity.

    • D.

      Do all of the above.

    Correct Answer
    C. Increase the asset’s capacity.
    Explanation
    Capital expenditures are not immediately expensed because they increase the asset's capacity. This means that the expenditures are made to improve or enhance the asset's ability to produce or perform. By increasing the asset's capacity, it becomes more valuable and can generate higher returns over its extended lifespan. Therefore, these expenditures are capitalized and recorded as an asset on the balance sheet, rather than being immediately expensed on the income statement.

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  • 16. 

    Repairs made to equipment as part of a yearly maintenance project would be recorded in the journal by debiting:

    • A.

      Accumulated Depreciation.

    • B.

      Depreciation Expense.

    • C.

      Equipment.

    • D.

      Repair Expense.

    Correct Answer
    D. Repair Expense.
    Explanation
    When repairs are made to equipment as part of a yearly maintenance project, it is considered an expense rather than a capital expenditure. Therefore, the repairs would be recorded in the journal by debiting the Repair Expense account. This reflects the decrease in the company's assets (equipment) and the corresponding increase in expenses. Accumulated Depreciation is not applicable in this case as it represents the cumulative depreciation of the equipment over its useful life. Depreciation Expense is also not relevant as it pertains to the systematic allocation of the cost of the equipment over its useful life.

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  • 17. 

    Which of the following should be included in the cost of equipment?

    • A.

      Freight costs to deliver the equipment

    • B.

      Installation costs for the equipment

    • C.

      Testing costs to get the equipment ready for use

    • D.

      All of the above

    Correct Answer
    D. All of the above
    Explanation
    The cost of equipment should include freight costs to deliver the equipment, installation costs for the equipment, and testing costs to get the equipment ready for use. These costs are directly associated with acquiring and preparing the equipment for use, and therefore should be included in the overall cost.

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  • 18. 

    The book value of a plant asset is the:

    • A.

      Cost less depreciation expense.

    • B.

      Cost plus accumulated depreciation.

    • C.

      Cost less accumulated depreciation.

    • D.

      Original cost of the asset, plus any capital expenditures.

    Correct Answer
    C. Cost less accumulated depreciation.
    Explanation
    The book value of a plant asset refers to the value of the asset on the company's balance sheet. It is calculated by subtracting the accumulated depreciation from the original cost of the asset. Accumulated depreciation represents the total depreciation expense that has been recorded over the asset's useful life. Therefore, the correct answer is "cost less accumulated depreciation."

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  • 19. 

    The process of allocating the cost of a plant asset to expense over its life is:

    • A.

      Amortization.

    • B.

      Depletion.

    • C.

      Matching.

    • D.

      Depreciation.

    Correct Answer
    D. Depreciation.
    Explanation
    The process of allocating the cost of a plant asset to expense over its life is called depreciation. Depreciation is the systematic allocation of the cost of a plant asset over its useful life. This is done to reflect the gradual wear and tear, obsolescence, or decrease in value of the asset over time. By spreading the cost of the asset over its useful life, the company can accurately match the expense with the revenue generated by the asset, resulting in more accurate financial statements.

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  • 20. 

    The length of service that a business expects to get from an asset as expressed in years, units of output, miles or other measures is the:

    • A.

      Depreciable cost.

    • B.

      Estimated useful life.

    • C.

      Salvage value.

    • D.

      Accelerated depreciation method.

    Correct Answer
    B. Estimated useful life.
    Explanation
    The estimated useful life refers to the length of service that a business expects to get from an asset, expressed in years, units of output, miles, or other measures. It is a measure used to determine the depreciation expense of an asset over its useful life. Depreciable cost refers to the cost of an asset that can be depreciated, salvage value is the estimated residual value of an asset at the end of its useful life, and accelerated depreciation method is a depreciation method that allows for larger deductions in the early years of an asset's life.

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  • 21. 

    The depreciation process attempts to match the:

    • A.

      Salvage value of the asset and the future market value of the asset.

    • B.

      Book value and the current market value of the asset.

    • C.

      Cost of the asset and the cash required to replace the asset.

    • D.

      revenues earned by the asset and the cost of the asset.

    Correct Answer
    D. revenues earned by the asset and the cost of the asset.
    Explanation
    The depreciation process attempts to match the revenues earned by the asset and the cost of the asset. Depreciation is the allocation of the cost of an asset over its useful life, and it is used to reflect the decrease in value of the asset over time. By matching the revenues earned by the asset with its cost, depreciation helps to accurately represent the financial impact of the asset on the company's income statement. This ensures that the expenses associated with the asset are properly accounted for and that the financial statements accurately reflect the asset's contribution to the company's revenue generation.

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  • 22. 

    A depreciation method in which an equal amount of depreciation expense is assigned to each year of the asset’s use is the:

    • A.

      Units-of-production method.

    • B.

      Straight-line method.

    • C.

      Accelerated depreciation method.

    • D.

      Estimated residual value method.

    Correct Answer
    B. Straight-line method.
    Explanation
    The straight-line method is a depreciation method where an equal amount of depreciation expense is allocated to each year of the asset's use. This means that the asset's value decreases by the same amount each year. It is a commonly used method as it is simple to calculate and provides a consistent and predictable expense over the asset's useful life. This method is especially useful for assets that have a steady and predictable decline in value over time.

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  • 23. 

    The expected cash value of a plant asset at the end of its useful life is known as:

    • A.

      Scrap value.

    • B.

      Salvage value.

    • C.

      Residual value.

    • D.

      Any of the above.

    Correct Answer
    D. Any of the above.
    Explanation
    The expected cash value of a plant asset at the end of its useful life is commonly referred to as its scrap value, salvage value, or residual value. These terms are used interchangeably to describe the estimated amount of money that can be obtained from selling or disposing of the asset after it is no longer useful. Therefore, any of the above options can be used to describe the expected cash value of a plant asset at the end of its useful life.

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  • 24. 

    For financial reporting purposes, most companies use:

    • A.

      Straight-line depreciation.

    • B.

      Units-of-production depreciation.

    • C.

      Double-declining balance depreciation.

    • D.

      Modified accelerated cost recovery system of depreciation.

    Correct Answer
    A. Straight-line depreciation.
    Explanation
    Most companies use straight-line depreciation for financial reporting purposes because it is the simplest and most widely accepted method. Straight-line depreciation evenly allocates the cost of an asset over its useful life, resulting in a consistent expense each year. This method is easy to calculate and provides a clear and consistent picture of an asset's value and depreciation over time. It is also in line with Generally Accepted Accounting Principles (GAAP) and International Financial Reporting Standards (IFRS), making it the preferred choice for financial reporting.

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  • 25. 

    Using an accelerated depreciation method will cause a profitable company to incur:

    • A.

      Less taxes in early years of the asset’s use as compared to later years.

    • B.

      More taxes in early years of the asset’s use as compared to later years.

    • C.

      the same amount of taxes in early years of the asset’s use as in the later years.

    • D.

      None of the above.

    Correct Answer
    A. Less taxes in early years of the asset’s use as compared to later years.
    Explanation
    Using an accelerated depreciation method allows a company to deduct a larger portion of the asset's cost in the early years of its use. This results in lower taxable income and therefore less taxes paid in the early years. As the asset gets older, the amount that can be deducted decreases, leading to higher taxable income and more taxes paid in the later years. Therefore, the correct answer is that a profitable company will incur less taxes in the early years of the asset's use compared to later years when using an accelerated depreciation method.

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  • 26. 

    Managers prefer accelerated depreciation over straight-line depreciation for income tax purposes because accelerated depreciation:

    • A.

      Provides the fastest tax deductions.

    • B.

      Decreases immediate tax payments.

    • C.

      Allows the company to reinvest the tax savings back in the business.

    • D.

      Does all of the above.

    Correct Answer
    D. Does all of the above.
    Explanation
    Managers prefer accelerated depreciation over straight-line depreciation for income tax purposes because it provides the fastest tax deductions, decreases immediate tax payments, and allows the company to reinvest the tax savings back in the business. By using accelerated depreciation, companies can deduct a larger portion of the asset's cost in the early years, resulting in higher tax deductions. This reduces the amount of taxable income and decreases immediate tax payments. The tax savings can then be reinvested in the business, promoting growth and expansion. Therefore, the correct answer is that accelerated depreciation does all of the above.

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  • 27. 

    A loss is recorded on the sale of a plant asset when the:

    • A.

      cash received exceeds the asset’s book value.

    • B.

      Asset’s book value is less than its historical cost.

    • C.

      asset’s book value is greater than the amount of cash received from the sale.

    • D.

      Cash received exceeds the cash paid for the replacement asset.

    Correct Answer
    C. asset’s book value is greater than the amount of cash received from the sale.
    Explanation
    When a loss is recorded on the sale of a plant asset, it means that the amount of cash received from the sale is less than the asset's book value. This indicates that the asset is being sold for less than its recorded value on the company's books. This can happen when the asset has depreciated in value or if there are other factors that have reduced its worth. In such cases, the company incurs a loss on the sale because it is receiving less cash than the asset is worth according to its book value.

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  • 28. 

    If an asset is scrapped before being fully depreciated:

    • A.

      The company will incur a loss on the disposal

    • B.

      The equipment account will be credited.

    • C.

      The accumulated depreciation account will be debited.

    • D.

      All of the above will occur.

    Correct Answer
    D. All of the above will occur.
    Explanation
    If an asset is scrapped before being fully depreciated, all of the above will occur. This means that the company will incur a loss on the disposal, the equipment account will be credited, and the accumulated depreciation account will be debited.

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  • 29. 

    Equipment purchased for $85,000 on January 1, 2010, was sold on July 1, 2013.  The company uses the straight-line method of computing depreciation and recognizes $17,000 of depreciation expense annually.  When recording the sale, the company should record a debit to Accumulated Depreciation for:

    • A.

      $51,000.

    • B.

      $59,500.

    • C.

      $68,000.

    • D.

      Nothing; Accumulated Depreciation is not debited.

    Correct Answer
    B. $59,500.
    Explanation
    Calculations: 17,000 depreciation for year x 6/12 = 8,500 depreciation for 2013
    2010 depreciation = 17,000
    2011 depreciation = 17,000
    2012 depreciation= 17,000
    2013 depreciation = 8,500
    Total depreciation 59,500

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  • 30. 

    All of the following are classified as natural resources and are depleted EXCEPT for: 

    • A.

      Land

    • B.

      Timber

    • C.

      Minerals

    • D.

      Oil

    Correct Answer
    A. Land
    Explanation
    Land is not classified as a natural resource that can be depleted because it is a fixed and finite resource that cannot be exhausted or used up. While timber, minerals, and oil are all natural resources that can be depleted over time through extraction and consumption, land itself remains constant and cannot be exhausted.

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  • 31. 

    Accumulated Depletion is a(n):

    • A.

      Contra-asset account

    • B.

      Contra-revenue account

    • C.

      Contra-liability account

    • D.

      Expense account

    Correct Answer
    A. Contra-asset account
    Explanation
    Accumulated Depletion is a contra-asset account. A contra-asset account is used to offset the balance of a related asset account. In the case of Accumulated Depletion, it is used to record the reduction in the value of natural resources, such as oil reserves or timber, over time. By subtracting the Accumulated Depletion from the original asset account, the net value of the natural resources can be determined. Therefore, Accumulated Depletion acts as a contra-asset account that reduces the value of the related asset account.

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  • 32. 

    The computation of depletion expense is most closely related to which method for computing depreciation?

    • A.

      Straight-line

    • B.

      Units-of-production

    • C.

      Double-declining balance

    • D.

      The method selected depends upon the specific natural resource

    Correct Answer
    B. Units-of-production
    Explanation
    The computation of depletion expense is most closely related to the units-of-production method for computing depreciation. This method calculates depreciation based on the actual usage or output of the asset. Since depletion expense is typically associated with natural resources, such as oil or minerals, the units-of-production method is the most appropriate as it matches the expense to the amount of resource extracted or used. This method allows for a more accurate reflection of the depletion of the natural resource over time.

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  • 33. 

    Accumulated Depreciation is a(n):

    • A.

      Contra-asset account

    • B.

      Contra-revenue account

    • C.

      Contra-liability account.

    • D.

      Expense account.

    Correct Answer
    A. Contra-asset account
    Explanation
    Accumulated Depreciation is a contra-asset account because it is used to record the decrease in value of an asset over time. Contra-asset accounts have a credit balance which offsets the debit balance of the related asset account. In the case of Accumulated Depreciation, it is used to reduce the carrying value of the asset on the balance sheet.

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  • 34. 

    The journal entry to record depletion would include:

    • A.

      A debit to Depletion Expense and credit to Accumulated Depreciation.

    • B.

      A debit to Accumulated Depletion and a credit to Depletion Expense.

    • C.

      A debit to Depletion Expense and a credit to Accumulated Depletion.

    • D.

      None of the above.

    Correct Answer
    C. A debit to Depletion Expense and a credit to Accumulated Depletion.
    Explanation
    The correct answer is a debit to Depletion Expense and a credit to Accumulated Depletion. Depletion is the process of allocating the cost of natural resources over their useful life. Depletion Expense is debited to recognize the expense incurred in depleting the natural resources, and Accumulated Depletion is credited to track the total amount of depletion over time. This journal entry follows the general rule of debiting expenses and crediting contra-asset accounts.

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  • 35. 

    The entry to record amortization:

    • A.

      Increases total assets and decreases total equity.

    • B.

      Decreases total assets and increases total equity.

    • C.

      Decreases both total assets and total equity.

    • D.

      Increases both total assets and total equity.

    Correct Answer
    C. Decreases both total assets and total equity.
    Explanation
    When recording amortization, an expense is recognized and deducted from the total assets. This decreases the total assets. At the same time, since the expense reduces the company's overall equity, the total equity is also decreased. Therefore, the correct answer is that recording amortization decreases both total assets and total equity.

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  • 36. 

    When compared to the other methods of depreciation, the double-declining-balance method of depreciation gives depreciation expense that is:

    • A.

      Less in the earlier periods

    • B.

      More in the earlier periods

    • C.

      Approximately the same in earlier periods as with other methods.

    • D.

      An accelerated method; therefore, companies cannot use this method.

    Correct Answer
    B. More in the earlier periods
    Explanation
    The double-declining-balance method of depreciation is an accelerated method, which means that it assigns a higher depreciation expense in the earlier periods of an asset's life. This is because the method assumes that an asset will generate more revenue and be more productive in its early years, therefore it allocates a larger portion of the asset's cost as an expense during those years. As the asset gets older, the depreciation expense decreases because the assumption is that its productivity and revenue generation will decline over time. Therefore, the correct answer is that the depreciation expense is more in the earlier periods.

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  • 37. 

    Research and development costs incurred by a company should be:

    • A.

      Capitalized and depreciated over a period not to exceed 20 years.

    • B.

      Capitalized and amortized over the useful life of the asset.

    • C.

      Either capitalized and depreciated or expensed immediately at the option of the accountant.

    • D.

      Expensed on the current year’s income statement.

    Correct Answer
    D. Expensed on the current year’s income statement.
    Explanation
    Research and development costs are considered as expenses rather than assets because they do not have a physical substance and their future benefits are uncertain. Therefore, these costs should be expensed on the current year's income statement rather than capitalized and depreciated or amortized over a period of time. This treatment reflects the matching principle in accounting, which states that expenses should be recognized in the same period as the revenues they help generate.

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  • 38. 

    Land, buildings and equipment are acquired for a lump sum of $875,000. The market values of the three assets are, respectively, $200,000, $500,000 and $300,000. What is the cost assigned to the equipment?

    • A.

      $250,000

    • B.

      $262,500

    • C.

      $300,000

    • D.

      $342,857

    Correct Answer
    B. $262,500
    Explanation
    Calculations: (300,000/1,000,000)*875,000= 262,500

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  • 39. 

    Land is purchased for $62,500. Back taxes paid by the purchaser were $7,500; total costs to demolish an            existing building were $11,000; fencing costs were $12,500; and lighting costs were $1,500. What is the cost of the land?           

    • A.

      $62,500

    • B.

      $81,000

    • C.

      $93,500

    • D.

      $95,000

    Correct Answer
    B. $81,000
    Explanation
    Calculations: 62,500+7,500+11,000=81,000 Lighting and fencing are land improvements

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Our quizzes are rigorously reviewed, monitored and continuously updated by our expert board to maintain accuracy, relevance, and timeliness.

  • Current Version
  • Mar 21, 2023
    Quiz Edited by
    ProProfs Editorial Team
  • Jul 20, 2012
    Quiz Created by
    Jc173
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