Recent Question

The equipment will be recorded at a cost of Use the following information for questions 1–4. A company purchased property for $300,000. The property included an acre of land valued at $50,000, a building valued at $150,000, and equipment valued at $125,000. 1. The land will be recorded at a cost of a. $45,000. b. $48,234. c. $46,154. d. $50,000. 2. The building will be recorded at a cost of a. $150,000. ...

Other / Other 20 Apr 2016

Natural resources are frequently referred to as wasting assets 1. A high return on assets indicates a. a profitable company. b. the amount of sales generated by each dollar invested in total assets. c. new assets need to be purchased. d. the company may be in financial difficulty. 2. For the year ended December 31, 2001, Inko Co. has net assets of $1,000,000 and net income of $290,000. Total assets on January 1, 2001 were $ ...

Other / Other 20 Apr 2016

Capital expenditures are expenditures that increase the company's investment TRUE OR FALSE: 1. A change in the estimated residual value of a capital asset requires a restatement of prior years' amortization. 2. To determine a new amortization amount after a change in estimate of a capital asset's useful life, the asset's remaining amortizable cost is divided by its remaining useful life. 3. Additions and improvements to a capita ...

Other / Other 20 Apr 2016

Management should select the amortization method 1. Management should select the amortization method that a. is easiest to apply. b. best measures the capital asset's market value over its useful life. c. best measures the capital asset's contribution to revenue over its useful life. d. has been used most often in the past by the company. 2. The amortization method that applies a constant percentage to amortizable cost in ca ...

Other / Other 20 Apr 2016

A loss on disposal of a capital asset as a result of a sale or a retirement is calculated TRUE OR FALSE: 1. The net book value of a capital asset is the amount originally paid for the asset less anticipated residual value. 2. A loss on disposal of a capital asset as a result of a sale or a retirement is calculated in the same way. 3. A capital asset must be fully amortized before it can be removed from the books. 4. If a capi ...

Other / Other 20 Apr 2016

Which one of the following items is not considered a part of the cost of a truck purchased for business use 1. Intangible assets include a. property, plant, and equipment. b. natural resources, such as mineral deposits and oil and gas reserves. c. assets that provide future benefits through special rights and privileges. d. government services. 2. Intangible assets do not include a. goodwill. b. patents. c. copyri ...

Other / Other 20 Apr 2016

Which of the following statements concerning financial statement 1. Which of the following statements concerning financial statement presentation is not a true statement? a. Intangibles are reported separately under Intangible Assets. b. The balances of major classes of assets may be disclosed in the footnotes. c. The balances of the accumulated amortization of major classes of assets may be disclosed in the footnotes. d. The ...

Other / Other 20 Apr 2016

In calculating resource amortization, residual value is 1. In calculating resource amortization, residual value is a. always immaterial. b. ignored. c. impossible to estimate. d. included in the calculation. 2. If a mining company extracts 1,500,000 tonnes in a period but only sells 1,200,000 tonnes, a. total amortization on the mine is based on the 1,200,000 tonnes. b. amortization expense is recognized on the ...

Other / Other 20 Apr 2016

Mehring's 2011 financial statements contained the following data Ex. 1 Based on the following information, compute the (1) current ratio and (2) working capital. Current assets ¥200,000,000 Total assets 900,000,000 Current liabilities 80,000,000 Total liabilities 500,000,000 Ex. 2 Mehring's 2011 financial statements contained the following data (in millions). Current assets $16,890 Accounts receivable $1,550 Tota ...

Other / Other 20 Apr 2016

Kingery Sales Company has the following selected accounts after posting BE 1 Kingery Sales Company has the following selected accounts after posting adjusting entries: Accounts Payable ₤ 42,000 Notes Payable, 3-month 50,000 Accumulated Depreciation—Equipment 14,000 Notes Payable, 5-year, 6% 80,000 Salary Expense 4,000 Interest Payable 3,000 Mortgage Payable 120,000 Sales Tax Payable 38,000 Instructions Prepare t ...

Other / Other 20 Apr 2016