Long-lived assets found on a company's balance sheet may include some assets that have no physical substance.
When assets are purchased as a group, the
... [Show More] total cost must be divided up and allocated to each asset in proportion to the market value of the assets as a whole.
T/F When the amount of annual depreciation is revised because of a change in the estimated useful life of an asset, prior years' financial statements should be restated.
T/F When an asset is sold and the selling price exceeds the asset's book value, net income will increase.
T/F When assets are purchased as a group, the total cost must be divided up and allocated to each asset in proportion to the market value of the assets as a whole.
T/F Extraordinary repairs, replacements, and additions are added to the appropriate asset accounts rather than being recorded as expenses.
T/F Depreciation is an allocation method, not a valuation method.
T/F Accumulated Depreciation is classified as an expense.
T/F The useful life of an asset is always measured in units of time, such as years or months.
Some analysts compare companies by focusing on earnings before interest, taxes, depreciation, and amortization (EBITDA), rather than net income.
A productive asset
A category of long-lived assets that are depleted over time is
Accountants say costs have been ______________when they are recorded as assets rather than as expenses.
The effect of capitalizing a cost that should have been expensed causes ______.
If management was to unethically capitalize costs that should not have been, which of the following would be misstated? (Select all that apply.)
Which of the following is a long-lived asset?
Cedar Fair purchased land; which of the following should be debited to the Land account? (Check all that apply.)
Which of these are natural resources that are depleted over time? (Check all that apply.)
In the case of a basket purchase, the cost of the land and building is ______.
Sunny Sky paid $30,000 cash for piece of land to be used for a new corporate headquarters building. What is the effect of this transaction on the accounting equation?
The entry to record the purchase of $10,000 of equipment by signing an $8,000 note and paying the rest with cash causes total assets to ______.
All costs to get an asset in place and ready for its intended use should be ______
The list price of a computer was $100,000. The sales tax on the computer was 5%. The delivery cost was $1,000. The cost to assemble the computer was $500. The Equipment account should be debited for a total of
The entry to record annual straight-line depreciation will decrease a company's __
Which of the following is true?
Company A and Company B both purchased a $100,000 machine with an estimated useful life of 10 years. Company A uses straight-line and Company B uses double-declining balance. At the end of the 3rd year, both sell the machines for the exact same amount. Since different depreciation methods were used, the entry to record the disposal will result in different amounts of ______. (Check all that apply.)
Which of the following may cause net income to differ among companies? (Check all that apply.)
Turnovers & Buns Bakery's fixed asset turnover ratio is 4.0, and On-a-Roll's fixed asset turnover ratio is 2.0. Which of the following statements is true?
On January 1, Whittle, Inc. purchased timber rights for $2,000,000, which are expected to produce a total of 2,000,000 cords of wood over 4 years, after which it will be sold for $500,000. The cords of wood cut were 200,000 in the 1st year and 280,000 in the 2nd year. Depletion for the 1st year equals ______. [Show Less]