Question Details

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.	copyrights.
		d.	plant and equipment.

	3.	A company purchased land for $70,000 cash. $7,000 was spent for demolishing an old building on the land before construction of a new building could start.  Under the cost principle, the cost of land would be recorded at
		a.	$77,000.
		b.	$70,000.
		c.	$63,000.
		d.	$7,000.

	4.	Which one of the following items is not considered a part of the cost of a truck purchased for business use?
		a.	Insurance during transit
		b.	Truck licence
		c.	Freight charges
		d.	Cost of lettering on side of truck

	5.	Which of the following assets does not decline in service potential over the course of its useful life?
		a.	Equipment
		b.	Furnishings
		c.	Land
		d.	Fixtures





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