Acc 291 Week 2 Quiz new

  

Practice Question 01

 

Land improvements are depreciable assets.
 

True

 

False

Practice Question 05

Which of the following is not a depreciable asset?
 

Land

Buildings

Equipment

Land improvements

 

Practice Question 10

  

Expenditures to maintain the operating efficiency and expected productive life of the unit are expensed as incurred.

True

False

Practice Question 15

 

What is depreciation?

A valuation approach

An adjustment to market value over time 

A cash accumulation approach

A cost allocation method

 

Practice Question 22

Cuso   Company purchased equipment on January 1, 2016, at a total invoice cost of   $400,000. The equipment has an estimated salvage value of $10,000 and an   estimated useful life of 5 years. What is the amount of accumulated   depreciation at December 31, 2017, if the straight-line method of   depreciation is used?
 

$80,000

$78,000
 

$156,000
 

$160,000

 

Practice Question 29

When   there is a change in estimated depreciation
 

current and future years’ depreciation     should be revised.

previous depreciation should be corrected.

only future years’ depreciation should be     revised.

new plant assets should be acquired to     replace the old.

Practice Question 36

On June 1, 2017, Brislin Company sold some equipment for $22,000. The original cost was $80,000, the estimated salvage value was $8,000, and the expected useful life was 8 years. The equipment was fully depreciated. How much is the gain or loss on the sale?
 

$5,400 gain

$14,000 gain

$850 loss

$50,000 loss

 

Practice Question 44

Given the following account balances at year end, how much is amortization expense on Anisha Enterprises income statement for the current year if Anisha thinks all of its intangibles should be amortized over ten years?

  

Sales revenue

$45,000,000

 

Patents

1,500,000

 

Accounts receivable

4,000,000

 

Land

15,000,000

 

Equipment

25,000,000

 

Trademarks

1,000,000

 

Goodwill

4,500,000

 

Research & development

2,000,000

$900,000

$250,000

Some other answer
 

$700,000

 

Practice Question 51

 

Walk Co’s average total assets are $200,000, net sales total to $100,000, and net income is $40,000. How much net income did Walk Co generate for each dollar of assets invested?
 

$0.20

$2.00

$0.50

$5.00

 

Practice Question 58

 

Schneider Trucking Inc. purchased a new semi-truck on January 1, 2016 for $200,000. Its useful life is expected to be 4 years and its salvage value is estimated at $25,000. What is the depreciation for 2017 using the declining-balance method at double the straight-line rate?
 

$100,000

$50,000

$87,500

$43,750