Chapter 10 Practice MaterialsWord下载.docx

Chapter 10 Practice MaterialsWord下载.docx

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NAT:

AACSBAnalytic|AICPAFN-Measurement

2.Landacquiredsoitcanberesoldinthefutureislistedinthebalancesheetasa（n）

fixedasset

currentasset

investment

intangibleasset

CDIF:

3.Whichofthefollowingshouldbeincludedintheacquisitioncostofapieceofequipment?

transportationcosts

installationcosts

testingcostspriortoplacingtheequipmentintoproduction

allarecorrect

DDIF:

4.Whichofthefollowingisincludedinthecostofconstructingabuilding?

insurancecostsduringconstruction

costofpavingparkinglot

costofrepairingvandalismdamageduringconstruction

costofremovingthedemolishedbuildingexistingonthelandwhenitwaspurchased

ADIF:

5.Whichofthefollowingisincludedinthecostofland?

costofpavingaparkinglot

brokeragecommission

outdoorparkinglotlightingattachedtotheland

fencesontheland

6.AccumulatedDepreciation

isusedtoshowtheamountofcostexpirationofintangibles

isthesameasDepreciationExpense

isacontraassetaccount

isusedtoshowtheamountofcostexpirationofnaturalresources

7.Abuildingwithanappraisalvalueof$137,000ismadeavailableatanofferpriceof$142,000.Thepurchaseracquiresthepropertyfor$30,000incash,a90-daynotepayablefor$40,000,andamortgageamountingto$60,000.Thecostbasisrecordedinthebuyer'

saccountingrecordstorecognizethispurchaseis

$137,000

$142,000

$130,000

$100,000

ModerateOBJ:

8.Ausedmachinewithapurchasepriceof$77,000,requiringanoverhaulcosting$8,000,installationcostsof$5,000,andspecialacquisitionfeesof$2,000,wouldhaveacostbasisof

$92,000

$91,000

$87,000

$86,000

9.Anewmachinewithapurchasepriceof$94,000,withtransportationcostsof$8,000,installationcostsof$6,000,andspecialacquisitionfeesof$2,000,wouldhaveacostbasisof

$96,000

$108,000

$102,000

$110,000

10.Expendituresthataddtotheutilityoffixedassetsformorethanoneaccountingperiodare

committedexpenditures

revenueexpenditures

currentexpenditures

capitalexpenditures

11.Acapitalexpenditureresultsinadebitto

anexpenseaccount

acapitalaccount

aliabilityaccount

anassetaccount

12.Whichofthefollowingbelowisanexampleofacapitalexpenditure?

cleaningthecarpetinthefrontroom

tune-upforacompanytruck

replacinganengineinacompanycar

replacingallburned-outlightbulbsinthefactory

13.Inaleasecontract,thepartywholegallyownstheassetisthe

lessee

lessor

operator

banker

14.Allleasesareclassifiedaseither

capitalleasesorlong-termleases

capitalleasesoroperatingleases

operatingleasesorcurrentleases

long-termleasesorcurrentleases

15.Thejournalentryforrecordinganoperatingleasepaymentwould

beamemoentryonly

debitthefixedassetandcreditCash

debitanexpenseandcreditCash

debitaliabilityandcreditCash

16.Whendeterminingwhethertorecordanassetasafixedasset,whattwocriteriamustbemet?

Mustbeaninvestmentandmustbelonglived.

Mustbelonglivedandmustusetheassetinaproductivemanner.

Mustbelonglivedandmustbeatangibleasset.

Mustbeatangibleassetandmustbeaninvestment.

17.Factorscontributingtoadeclineintheusefulnessofafixedassetmaybedividedintothefollowingtwocategories

salvageandfunctional

physicalandfunctional

residualandsalvage

functionalandresidual

10-02

18.Afixedasset'

sestimatedvalueatthetimeitistoberetiredfromserviceiscalled

bookvalue

residualvalue

marketvalue

carryingvalue

19.Allofthefollowingbelowareneededforthecalculationofdepreciationexcept

cost

estimatedlife

20.Themethodofdeterminingdepreciationthatyieldssuccessivereductionsintheperiodicdepreciationchargeovertheestimatedlifeoftheassetis

units-of-production

declining-balance

straight-line

time-valuation

21.Whentheamountofuseofafixedassetvariesfromyeartoyear,themethodofdeterminingdepreciationexpensethatbestmatchesallocationofcostwithrevenueis

MACRS

22.Amachinewithacostof$65,000hasanestimatedresidualvalueof$5,000andanestimatedlifeof5yearsor15,000hours.Itistobedepreciatedbytheunits-of-productionmethod.Whatistheamountofdepreciationforthesecondfullyear,duringwhichthemachinewasused5,000hours?

$8,000

$20,000

$12,000

$21,667

DifficultOBJ:

23.Equipmentwithacostof$160,000hasanestimatedresidualvalueof$10,000andanestimatedlifeof5yearsor12,000hours.Itistobedepreciatedbythestraight-linemethod.Whatistheamountofdepreciationforthefirstfullyear,duringwhichtheequipmentwasused3,300hours?

$30,000

$32,500

$34,000

$40,000

24.Amachinewithacostof$65,000hasanestimatedresidualvalueof$5,000andanestimatedlifeof4yearsor18,000hours.Whatistheamountofdepreciationforthesecondfullyear,usingthedoubledeclining-balancemethod?

$15,000

$16,250

25.Themostwidelyuseddepreciationmethodis

sum-of-the-years-digits

26.Equipmentwithacostof$80,000,anestimatedresidualvalueof$5,000,andanestimatedlifeof15yearswasdepreciatedbythestraight-linemethodfor5years.Duetoobsolescence,itwasdeterminedthattheusefullifeshouldbeshortenedby5yearsandtheresidualvaluechangedtozero.Thedepreciationexpenseforthecurrentandfutureyearsis

$5,500

$11,000

$10,000

$5,000

27.Thedepreciationmethodthatdoesnotuseresidualvalueincalculatingthefirstyear'

sdepreciationexpenseis

double-declining-balance

noneoftheabove

28.Ifafixedasset,suchasacomputer,werepurchasedonJanuary1stfor$1,950withanestimatedlifeof3yearsandasalvageorresidualvalueof$150,thejournalentryformonthlyexpenseunderstraight-linedepreciationis:

（Note:

EOMindicatesthelastdayofeachmonth.）

EOMDepreciationExpense50.00

AccumulatedDepreciation50.00

EOMDepreciationExpense600.00

AccumulatedDepreciation600.00

EOMAccumulatedDepreciation600.00

DepreciationExpense600.00

EOMAccumulatedDepreciation50.00

DepreciationExpense50.00

29.Theproperjournalentrytopurchaseacomputeronaccounttobeutilizedwithinthebusinesswouldbe:

Jan2OfficeSupplies1,250.00

AccountsPayable1,250.00

Jan2OfficeEquipment1,250.00

AccountsReceivable1,250.00

30.Residualvalueisalsoknownasallofthefollowingexcept

scrapvalue

tradeinvalue

salvagevalue

netbookvalue

AACSBAnalytic