Question Details

The asset turnover ratio is computed by 




1.	Under U.S. GAAP
a.	Property, plant, and equipment may not be revalued.
b.	Component depreciation is not required.
c.	Research and development costs are expensed as incurred.
d.	All of the choices are correct.



2.	Which of the following statements concerning IFRS and U.S. GAAP is true?

3.	A company decides to exchange its old machine and ¥770,000 cash for a new machine. The old machine has a book value of ¥630,000 and a fair value of ¥700,000 on the date of the exchange. The cost of the new machine would be recorded at

4.	A company exchanges its old office equipment and $40,000 for new office equipment. The old office equipment has a book value of $28,000 and a fair value of $20,000 on the date of the exchange. The cost of the new office equipment would be recorded at

5.	In an exchange of plant assets that has commercial substance, any difference between the fair value and the book value of the old plant asset is

	6.	Gains on an exchange of plant assets that has commercial substance are

	7.	Losses on an exchange of plant assets that has commercial substance are

8.	The cost of a new asset acquired in an exchange that has commercial substance is the cash paid plus the

9.	The cost of land includes all of the following except

10.	A term that is not synonymous with property, plant, and equipment is

11.	The factor that is not relevant in computing depreciation is


12.	Depreciable cost is the

	13.	Santayana Company purchased a machine on January 1, 2009, for $8,000 with an estimated residual value of $2,000 and an estimated useful life of 8 years. On January 1, 2011, Santayana decides the machine will last 12 years from the date of purchase. The residual value is still estimated at $2,000. Using the straight-line method, the new annual depreciation will be

14.	Ordinary repairs are expenditures to maintain the operating efficiency of a plant asset and are referred to as

15.	Additions and improvements are generally

16.	A gain on sale of a plant asset occurs when the proceeds of the sale are greater than the

17.	The entry to record depletion expense

18.	All of the following are intangible assets except
a.	copyrights.
b.	goodwill.
c.	patents.
d.	research and development costs.


19.	The asset turnover ratio is computed by dividing

20.	In an exchange of plant assets that has commercial substance





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