ACC 291 Week 2 Practice Quiz

ACC 291 Week 2 Practice Quiz

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 ACC 291 Week 2 Practice Quiz
 

 

Practice Question 01

Land improvements are depreciable assets.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
True
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
False
 

 

 

Practice Question 05

Which of the following is not a depreciable asset?

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
Land improvements
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
Equipment
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
Buildings
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
Land
 

 

 

Practice Question 10

Expenditures to maintain the operating efficiency and expected productive life of the unit are expensed as incurred.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
True
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
False
 

 

 

Practice Question 15

What is depreciation?

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
A valuation approach
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
A cash accumulation approach
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
A cost allocation method
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
An adjustment to market value over time
 

 

 

Practice Question 22

Cuso Company purchased equipment on January 1, 2016, at a total invoice cost of $400,000. The equipment has an estimated salvage value of $10,000 and an estimated useful life of 5 years. What is the amount of accumulated depreciation at December 31, 2017, if the straight-line method of depreciation is used?

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
$156,000
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
$78,000
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
$80,000
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
$160,000
 

 

 

Practice Question 29

When there is a change in estimated depreciation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
current and future years’ depreciation should be revised.
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
new plant assets should be acquired to replace the old.
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
only future years’ depreciation should be revised.
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
previous depreciation should be corrected.
 

 

 

Practice Question 36

On June 1, 2017, Brislin Company sold some equipment for $22,000. The original cost was $80,000, the estimated salvage value was $8,000, and the expected useful life was 8 years. The equipment was fully depreciated. How much is the gain or loss on the sale?

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
$50,000 loss
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
$5,400 gain
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
$14,000 gain
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
$850 loss
 

 

 

Practice Question 44

Given the following account balances at year end, how much is amortization expense on Anisha Enterprises income statement for the current year if Anisha thinks all of its intangibles should be amortized over ten years?

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales revenue
$45,000,000
Patents
1,500,000
Accounts receivable
4,000,000
Land
15,000,000
Equipment
25,000,000
Trademarks
1,000,000
Goodwill
4,500,000
Research & development
2,000,000
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
$250,000
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
$700,000
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
$900,000
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
Some other answer
 

 

 

Practice Question 51

Walk Co’s average total assets are $200,000, net sales total to $100,000, and net income is $40,000. How much net income did Walk Co generate for each dollar of assets invested?

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
$0.50
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
$0.20
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
$5.00
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
$2.00
 

 

 

Practice Question 58

Schneider Trucking Inc. purchased a new semi-truck on January 1, 2016 for $200,000. Its useful life is expected to be 4 years and its salvage value is estimated at $25,000. What is the depreciation for 2017 using the declining-balance method at double the straight-line rate?

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
$50,000
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
$100,000
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
$43,750
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
$87,500
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