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Debbie Morgan 13 questions

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Questions in this quiz (13)

  1. 1Plant assets are defined as:
    1. ATangible assets that have a useful life of more than one accounting period and are used in the operation of a business.
    2. BCurrent assets.
    3. CHeld for sale.
    4. DIntangible assets used in the operations of a business that have a useful life of more than one accounting period.
    5. ETangible assets used in the operation of business that have a useful life of less than one accounting period.
  2. 2One characteristic of plant assets is that they are:
    1. ACurrent assets.
    2. BUsed in operations.
    3. CNatural resources.
    4. DLong-term investments.
    5. EIntangible.
  3. 3The relevant factors in computing depreciation do not include:
    1. ACost.
    2. BSalvage value.
    3. CUseful life.
    4. DDepreciation method.
    5. EMarket value.
  4. 4Salvage value is:
    1. ANot a factor relevant to determining depletion.
    2. BA factor relevant to amortizing an intangible asset with an indefinite life.
    3. CAn estimate of the asset's value at the end of its benefit period.
    4. DA factor relevant to determining depreciation under MACRS.
    5. EA factor relevant to determining depreciation that cannot be revised during an asset's useful life.
  5. 5Depreciation:
    1. AMeasures the decline in market value of an asset.
    2. BMeasures physical deterioration of an asset.
    3. CIs the process of allocating the cost of a plant asset to expense.
    4. DIs an outflow of cash from the use of a plant asset.
    5. EIs applied to land.
  6. 6The useful life of a plant asset is:
    1. AThe length of time it is productively used in a company's operations.
    2. BNever related to its physical life.
    3. CIts productive life, but not to exceed one year.
    4. DDetermined by the FASB.
    5. EDetermined by law.
  7. 7The term inadequacy, as it relates to the useful life of an asset, refers to:
    1. AThe insufficient capacity of a company's plant assets to meet the company's growing production demands.
    2. BAn asset that is worn out.
    3. CAn asset that is no longer useful in producing goods and services.
    4. DThe condition where the salvage value is too small to replace the asset.
    5. EThe condition where the asset's salvage value is less than its cost.
  8. 8The term, obsolescence, as it relates to the useful life of an asset, refers to:
    1. AThe end of an asset's useful life.
    2. BA plant asset that is no longer useful in producing goods and services with a competitive advantage.
    3. CThe insufficient capacity of a company's plant assets to meet the company's productive demands.
    4. DAn asset's salvage value becoming less than its replacement cost.
    5. EIntangible assets that have been fully amortized.
  9. 9Once the estimated depreciation expense for an asset is calculated:
    1. AIt cannot be changed, based on the historical cost principle.
    2. BIt may be revised based on new information.
    3. CAny changes are accumulated and recognized when the asset is sold.
    4. DThe estimate itself cannot be changed; however, new information should be disclosed in financial statement footnotes.
    5. EIt cannot be changed, based on the consistency principle.
  10. 10A machine originally had an estimated useful life of 6 years, but after 4 complete years, it was decided that the original estimate of useful life should have been 10 years. At that point the remaining cost to be depreciated should be allocated over the remaining:
    1. A2 years.
    2. B4 years.
    3. C6 years.
    4. D16 years.
    5. E10 years.

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Description
Accounting Quiz on Untitled, created by Debbie Morgan on 02/06/2019.
Language
English
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