. To measure depreciation, all of the following must be known


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. To measure depreciation, all of the following must be known EXCEPT: (Points : 2) Market value Residual value Historical cost Estimated life Question 2. 2. The removal of an old building to make the land ready for its intended use is charged to _______. (Points : 2) land land improvements buildings operating expenses Question 3. 3. The process of a company selling its accounts receivable to another company is referred to as _______. (Points : 2) discounting adjusting assignment factoring Question 4. 4. A note receivable due in five years is listed on the balance sheet under the caption _______. (Points : 2) investments current assets fixed assets stockholders’ equity Question 5. 5. The inventory data for an item for November are: Nov. 1          Inventory            25 units at $20 10               Purchased          30 units at $21 30               Purchased          10 units at $22 Sold                   35 units Using the last-in, first-out method, what is the cost of the merchandise inventory of 30 units on November 30? (Points : 2) $640 $623 $600 $605 Question 6. 6. Use the following data to calculate the cost of ending inventory under the FIFO method. September 1 Beginning Inventory 15 units @ $20 September 10 Purchases 20 units @ $25 September 20 Purchases 25 units @ $28 September 30 Ending Inventory 30 units (Points : 2) $825 $750 $675 $840 Question 7. 7. Book value is defined as _______. (Points : 2) current market value less residual value cost less residual value current market value less accumulated depreciation cost less accumulated depreciation Question 8. 8. When an account is written off under the allowance method, (Points : 2) the write-off is taken against the allowance account. bad debt expense is increased. accounts receivable remains unchanged. accounts receivable increases. Question 9. 9. Intangible assets are used in operations but _______. (Points : 2) cannot be specifically identified cannot be sold lack physical substance cannot be long-lived Question 10. 10. Receivables are usually a significant portion of _______. (Points : 2) total current liabilities total liabilities total current assets total assets Question 11. 11. A 60-day, 12% note for $15,000 dated May 1 is received from a customer on account. The maturity value of the note is _______. (Points : 2) $15,300 $15,000 $14,700 $16,800 Question 12. 12. Goodwill is _______. (Points : 2) amortized similar to other intangibles only written down if an impairment in value occurs charged to expense immediately amortized over 40 years or its economic life, whichever is shorter Question 13. 13. A note receivable due in 90 days is listed on the balance sheet under _______. (Points : 2) long-term liabilities fixed assets current liabilities current assets Question 14. 14. A machine was purchased for $60,000. It has a useful life of 5 years and a residual value of $6,000. Under the straight-line method, what is annual depreciation expense? (Points : 2) $13,200 $12,000 $11,000 $10,800 Question 15. 15. Depreciable cost equals _______. (Points : 2) cost less accumulated depreciation book value less residual value cost less residual value market value less residual value Question 16. 16. The two most widely used methods for determining the cost of inventory are _______. (Points : 2) FIFO and LIFO FIFO and average cost LIFO and average cost gross profit and average cost Question 17. 17. Salvage value has a similar meaning as _______. (Points : 2) residual value scrap value book value both residual value and scrap value Question 18. 18. All amounts paid to get an asset in place and ready for use are referred to as _______. (Points : 2) capital expenditures revenue expenditures residual value cost of an asset Question 19. 19. Fixed assets are ordinarily presented in the balance sheet _______. (Points : 2) at current market values at replacement costs at cost less accumulated depreciation in a separate section along with intangible assets Question 20. …

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