Question Details

The balance in the Accumulated Depreciation account represents 



1.	On January 1, 2011, Chicago Furniture purchases a new delivery truck. The company pays $65,000 for the truck, sales taxes of $3,400, and delivery costs of $1,700. Chicago Furniture pays a local vendor $3,600 to paint the company's name and logo on the side of the truck. The company also pays $12,000 for an annual insurance policy and $1,300 for a motor vehicle license. At what amount will Chicago Furniture record the truck on its statement of financial position a t January1, 2011?

	2.	Which of the following statement regarding depreciation is false?

3. 	Depreciation

	4.	The balance in the Accumulated Depreciation account represents the

	5.	Which one of the following items is not a consideration when recording periodic depreciation expense on plant assets?

	6.	Depreciation is the process of allocating the cost of a plant asset over its useful life in

	7.	The book value of an asset is equal to the


	8.	Accountants do not attempt to measure the change in a plant asset's fair value during ownership because

 9.	Depreciation is a process of

	10.	Recording depreciation each period is necessary in accordance with the

11.	In computing depreciation, residual value is

12.	When estimating the useful life of an asset, accountants do not consider

	13.	Useful life is expressed in terms of use expected from the asset under the

	14.	Equipment was purchased for $90,000. Freight charges amounted to $4,200 and there was a cost of $12,000 for building a foundation and installing the equipment. It is estimated that the equipment will have a $18,000 residual value at the end of its 5-year useful life. Depreciation expense each year using the straight-line method will be

	15.	A truck was purchased for ¥120,000 and it was estimated to have a ¥24,000 residual value at the end of its useful life. Monthly depreciation expense of ¥2,000 was recorded using the straight-line method. The annual depreciation rate is
16.	A company purchased factory equipment on April 1, 2011 for €80,000. It is estimated that the equipment will have a €10,000 residual value at the end of its 10-year useful life. Using the straight-line method of depreciation, the amount to be recorded as depreciation expense at December 31, 2011 is

17.	A company purchased office equipment for $40,000 and estimated a residual value of $8,000 at the end of its 5-year useful life. The constant percentage to be applied against book value each year if the double-declining-balance method is used is

	18.	The declining-balance method of depreciation produces 

	19.	A company purchased factory equipment for ¥350,000. It is estimated that the equipment will have a ¥35,000 residual value at the end of its estimated 5-year useful life. If the company uses the double-declining-balance method of depreciation, the amount of annual depreciation recorded for the second year after purchase would be


20.	The units-of-activity method is generally not suitable for




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