Which of the following will be classified as a fixed asset for a movie theater?a. Land for saleb. Trademarkc. A popcorn machined. The latest movie
All of the following are factors used in determining depreciation expense with the straight-line method excepta. the asset"s expected useful life.b. the asset"s estimated residual value.c. the asset"s initial cost.d. None of these choices are correct.
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Which of the following is not one of the most common depreciation methods?a. Double-declining-balance methodb. Sum-of-the-years-digits methodc. Units-of-activity methodd. Straight-line method
Which of the following fixed assets is not depreciated?a. Buildingb. Landc. Equipmentd. None of these choices are correct.
Which of the following is not true in regard to selling fixed assets?a. Accumulated Depreciation will be credited.b. The journal entry is similar to discarding fixed assets.c. The cash receipt is recorded.d. If the selling price is more than the book value, a gain is recorded.
The expensing of a natural resource is calleda. depreciation.b. amortization.c. depletion.d. replenishing.
The journal entry to record depletion includes aa. debit to Accumulated Depletion.b. credit to Depletion Expense.c. credit to Accumulated Depreciation.d. debit to Depletion Expense.
The calculation of depletion expense isa. Quantity Extracted × Estimated Useful Life.b. Depletion Rate × Quantity Extracted.c. Depletion Rate × Estimated Useful Life.d. None of these choices are correct.
Which of the following is not classified as an intangible asset?a. Goodwillb. Trademarkc. Investmentd. Patent
Which of the following statements is true regarding goodwill?a. Goodwill is amortized based on a 10-year period.b. In a purchase of a business at a price in excess of the fair value of its net assets, goodwill is recorded as the excess.c. Goodwill is the exclusive use of a name, term, or symbol used to identify a business or its product.d. Goodwill is amortized based on the lesser of the useful life or the legal life.
b. In a purchase of a business at a price in excess of the fair value of its net assets, goodwill is recorded as the excess.
The expensing of intangible assets is calleda. amortization.b. depreciation.c. depletion.d. replenishing
Intangible assets are reported on the balance sheeta. before the current assets.b. before property, plant, and equipment.c. immediately after the property, plant, and equipment.d. immediately after the current assets.
long term used day to day not offered for normal part of sales Examples: plant property or equipment
Initial cost of a fixed asset includes all amounts spent to get asset in place and ready for use (freight cost, installment)
(1) the fixed asset"s initial cost, (2) the useful life of the asset(3) the residual value of the asset.
1) Deprecation per unit= (Cost - residual value) / Total Estimated units of activity 2) Depreciation expense= Depreciation per unit x units of activity per period
1) Determine straight line Percentage (Annual deprecation = (Cost-Residual Value)/ Useful Life)2) Determine double declining by multiplying straight line x23) Compute the depreciation expense by multiplying double decline x book value
Depreciation may be revised into the future for changes in an asset"s useful life or residual value.
When discarding a fixed asset any _____________ for the current period is recorded, and the _________ of the asset is then removed from the accounts.
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When a fixed asset is sold, the ____________ is removed, and the cash or other asset received is recorded.
Which of the following expenditures incurred in connection with acquiring machinery is a proper charge to the asset account?FreightInstallation costsBoth A and BNeither A nor B
What is the amount of depreciation, using the double-declining-balance method for the second year of use for equipment costing $9,000, with an estimated residual value of $600 and an estimated life of three years?Answer$6,000$3,000$2,000$400
Equipment purchased on January 3 for $80,000 was depreciated using the straight-line method based upon a five-year life and $7,500 residual value. The equipment was sold three years later on December 31 for $40,000. What is the gain on the sale of the equipment?Answer$3,500$14,500$36,500$43,500