Accounting 201 - Chapter 7

Approved & Edited by ProProfs Editorial Team

The editorial team at ProProfs Quizzes consists of a select group of subject experts, trivia writers, and quiz masters who have authored over 10,000 quizzes taken by more than 100 million users. This team includes our in-house seasoned quiz moderators and subject matter experts. Our editorial experts, spread across the world, are rigorously trained using our comprehensive guidelines to ensure that you receive the highest quality quizzes.

Learn about Our Editorial Process

| By Jc173

Jc173

Community Contributor

Quizzes Created: 23 | Total Attempts: 15,044

Questions: 39 | Attempts: 562 | Updated: Mar 21, 2023

Questions

Settings

Feedback

During the Quiz End of Quiz

Play as

Quiz Flashcard

Create your own 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

Quiz Review Timeline +

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

Accounting 201 - Chapter 7

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

The only plant asset that does not depreciate is:

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

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

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

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

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

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

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:

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

A capital expenditure is:

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:

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

Capital expenditures are not immediately expensed because these items:

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

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

The book value of a plant asset is the:

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

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:

The depreciation process attempts to match the:

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

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

For financial reporting purposes, most companies use:

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

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

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

If an asset is scrapped before being fully depreciated:

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:

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

Accumulated Depletion is a(n):

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

Accumulated Depreciation is a(n):

The journal entry to record depletion would include:

The entry to record amortization:

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

Research and development costs incurred by a company should be:

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?

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?