principle_of_accounting_Question

Question 1 of 20

5.0 Points

A. $20,740.

B. $21,940.

C. $21,000.

D. $21,570.

In the last year of useful life, the salvage value was ignored using double-declining-balance depreciation. This error would cause:

Question 3 of 20

5.0 Points

A. assembly cost.

B. a patent.

C. a building.

D. land.

Question 4 of 20

5.0 Points

A. Computer

B. Desk chairs

C. Building

D. Land

Question 5 of 20

5.0 Points

A. residual value.

B. book value.

C. salvage value.

D. market value.

Question 6 of 20

5.0 Points

A. periodic normal maintenance costs.

B. additions to existing plant assets.

C. initial costs of acquiring plant assets.

D. All of these answers are correct.

Question 7 of 20

5.0 Points

A. double declining-balance method.

B. units-of-production method.

C. straight-line method.

D. All of the above.

The amount to include in the entry to record the cost of a property, plant, and equipment asset would include:

Straight-line depreciation is used in the first year when double-declining-balance should be used. This error would cause:

Question 10 of 20

5.0 Points

A. $8,000.

B. $15,840.

C. $16,940.

D. $8,556.

Jason Moore purchased computer equipment for $2,800 on January 1, 2012. It has a residual value of $400 with a useful life of 4 years. After the appropriate adjusting entries have been made, the balance in Accumulated Depreciation account for this asset on January 1, 2014, under the straight-line method, should be:

Question 12 of 20

5.0 Points

A. in the period it is sold.

B. over the periods that benefit the company.

C. at the time it is paid.

D. in the period it is purchased.

Which of the following is an example of a land improvement?

Question 14 of 20

5.0 Points

A. debit Depreciation Expense, $2,500; credit Equipment $2,500.

B. debit Cash $2,500; credit Equipment $2,500.

C. debit Accumulated Depreciation $1,500; debit Loss on Disposal of an Asset $1,000; credit Equipment $2,500.

D. debit Equipment $2,500; credit Accumulated Depreciation $2,500.

Question 15 of 20

5.0 Points

A. the period's net income to be overstated.

B. the period end assets to be overstated.

C. the period's net income to be understated.

D. None of these are correct.

Question 16 of 20

5.0 Points

A. debit Machinery $20,000, debit Expenses $1,500; and credit Accounts Payable $21,500.

B. debit Machinery $20,000; credit Accounts Payable $20,000.

C. debit Machinery $20,500; credit Accounts Payable $20,500.

D. debit Machinery $21,500; credit Accounts Payable $21,500.

Question 17 of 20

5.0 Points

A. Straight-line

B. Double-declining-balance

C. Units-of-production

D. Both A and B are correct.

Question 18 of 20

5.0 Points

A. debit Amortization of Patents $50,000; credit Patents $50,000.

B. debit Patents $50,000; credit Cash $50,000.

C. debit Patents $10,000; credit Amortization of Patents $10,000.

D. debit Amortization of Patents $10,000; credit Patents $10,000.

A loss on the sale of an asset would occur when:

Chocolate Supreme purchased new baking equipment for $15,000 subject to terms 4/10, n/45. The discount was taken. Additional costs included sales tax $900 and installation $300. The total cost to be added to the machinery account is: