Exam 9: Long-Lived Tangible and Intangible Assets

Correct Answer

verified

Part a
Asset impairment loss =...

View Answer

Show Answer

A) $150,000.
B) $200,000.
C) $400,000.
D) $275,000.

Correct Answer

verified

Show Answer

A) Assets will be overstated.
B) Stockholders' equity will be understated.
C) Expenses will be overstated.
D) Liabilities will be overstated.

Correct Answer

verified

Show Answer

Correct Answer

verified

The company used the units-of-production...

View Answer

Show Answer

Correct Answer

verified

Show Answer

A) in the Operating Revenues section of the income statement.
B) in the Operating Expenses section of the income statement.
C) as a direct increase to the asset account on the balance sheet.
D) as a direct decrease to the asset account on the balance sheet.

Correct Answer

verified

Show Answer

Correct Answer

verified

Show Answer

A) Expenses increase.
B) Net income decreases.
C) Inventory increases.
D) Cash flow decreases.

Correct Answer

verified

Show Answer

A) Assets that will be used for more than a year.
B) When a company writes down the value of an asset when estimated future cash flows fall below the original level estimated.
C) The numerator of the fixed asset turnover ratio.
D) The cost of financing an asset.
E) When costs are recorded as assets rather than expenses.
F) How expenses are reported in the income statement.
G) The denominator of the fixed asset turnover ratio.
H) The average proportion of a company's total assets that is long-lived.
I) A depreciation method that produces higher amounts of depreciation expense in the early years of an asset's life and lower amounts in the later years.
J) When a company writes down the value of an asset because estimated future cash flows fall below the book value.
K) Assets that have physical substance.
L) A depreciation method that spreads asset cost by use rather than time.
M) The process of transferring the cost of long-lived tangible assets to expenses.
N) Also known as book value.

Correct Answer

verified

Show Answer

A) $175,500.
B) $226,500.
C) $402,000.
D) $160,500.

Correct Answer

verified

Show Answer

Correct Answer

verified

Show Answer

Correct Answer

verified

Show Answer

A) The company would record $10,000,000 million as the cost of the land.
B) The company would record $9,000,000 as the cost of the land.
C) The company would record $8,000,000 as the cost of the land.
D) The company would record $1,000,000 as demolition expense.

Correct Answer

verified

Show Answer

A) The carrying value of an asset is a constant amount during the asset's useful life.
B) Accumulated depreciation is a constant amount during the asset's estimated useful life.
C) Depreciation Expense is a constant amount each year.
D) The book value of an asset is an increasing amount during the asset's useful life.

Correct Answer

verified

Show Answer

A) ordinary repairs cost less.
B) ordinary repairs are expenditures for routine maintenance and upkeep,whereas extraordinary repairs increase an assets economic usefulness in the future through increased efficiency,capacity,or longer life.
C) extraordinary repairs only maintain the asset for a short time,whereas ordinary repairs increase the usefulness of assets beyond their original condition.
D) extraordinary repairs are expenditures,not expenses.

Correct Answer

verified

Show Answer

A) The calculations are easier if you allow more depreciation in the early years of an asset's life.
B) The government wants to encourage companies to invest in assets to promote economic renewal and growth.
C) So that most income taxes are paid by average taxpayers,rather than by big corporations.
D) The calculations are more complicated,so it provides more jobs for accountants and thus stimulates the economy.

Correct Answer

verified

Show Answer

A) When a company expenses the entire cost of a long-lived asset in the first year of use.
B) When a company receives free publicity in return for charitable contributions.
C) A tax law dealing with how companies can depreciate their assets.
D) The acquisition cost of an asset minus its accumulated depreciation.
E) When a company expenses the cost of a long-lived asset by a constant annual amount.
F) The exclusive right to sell or use a product or process that is granted to encourage innovation.
G) Net income plus interest,taxes,depreciation and amortization expenses.
H) Tangible long-lived assets.
I) An intangible asset that represents the value of unidentifiable assets acquired.
J) Names or images that appear with a ® or ^TM.
K) What a company expects to receive when an asset is disposed of at the end of its useful life.
L) Assets whose values do not change over time.
M) When a company allocates the cost of a long-lived asset at a higher rate in the first years of use.
N) The estimated total use a company expects to receive from an asset.

Correct Answer

verified

Show Answer

A) Tangible assets
B) Fixed assets
C) Property,plant,and equipment
D) Long-lived assets

Correct Answer

verified

Show Answer