Practice Quiz 8A
Complete the following quiz for the lesson: Long-Term Operating Assets
A capitalized expenditure is accounted for as an expense rather than an asset. *
1 point
Long-Term Assets are also known as *
1 point
Long-Term Assets might include *
1 point
A used truck is purchased for $20,000 ($5,000 cash down and execution of a note payable for $15,000) with additional cash acquisition costs of $1,200 for state sales tax. In addition, $2,000 is incurred and paid for engine overhaul deemed necessary prior to the truck's initial use. $1,000 of insurance on the truck is prepaid for one year's coverage. The total capitalized cost for the truck is *
1 point
On July 1, 20X1, ABC, Inc., acquired a new machine for $70,000. Its estimated useful life is ten years with an expected salvage value of $3,100. Assuming straight-line depreciation, 20X1 depreciation expense is *
1 point
On July 1, 20X1, ABC, Inc., acquired a new machine for $70,000. Its estimated useful life is ten years with an expected salvage value of $3,100. Assuming straight-line depreciation, the balance of accumulated depreciation at 12/31/X2 would be *
1 point
Using the information from the previous question directly above and assuming the total anticipated production of the machine during its useful life is 100,000 units of production with the same $3,100 salvage value, what would the 12/31/X1 book value of the machine be using the units of production method of calculating depreciation and assuming 10,000 units of actual production in 20X1? *
1 point
A truck which originally cost $25,000 has an estimated salvage value of $5,000 at the end of its 10 year estimated useful life and accumulated depreciation after 3 years of $6,000. Assuming that at the end of 3 years the truck's appraised fair market value is $21,000, then the net amount to be reflected on the balance sheet for the truck would be *
1 point
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