ACC 231- Chapter 7 Questions with
complete solution 2025/2026
plant assets - correct answer ✔long-lived assets that are tangible
depreciation expense - correct answer ✔expense associated with long-term tangible assets (PPE)
natural resources - correct answer ✔accounted for as long-term assets when they are
purchased/developed and when extracted/used up, are moved to inventory and when sold they are
transferred to COGS (ex: oil, coal mines, gas)
intangible assets - correct answer ✔assets w no physical form (patents, copyrights, trademarks,
goodwill)
cost of any asset - correct answer ✔all costs incurred to bring the asset to its intended use
PPE - correct answer ✔property, plant, and equipment
land - correct answer ✔NOT subject to depreciation
Amortization - correct answer ✔represents use of intangible assets
depletion - correct answer ✔represents use of natural resources
basket purchase of assets - correct answer ✔when business purchase several types of fixed assets in a
group
complete solution 2025/2026
plant assets - correct answer ✔long-lived assets that are tangible
depreciation expense - correct answer ✔expense associated with long-term tangible assets (PPE)
natural resources - correct answer ✔accounted for as long-term assets when they are
purchased/developed and when extracted/used up, are moved to inventory and when sold they are
transferred to COGS (ex: oil, coal mines, gas)
intangible assets - correct answer ✔assets w no physical form (patents, copyrights, trademarks,
goodwill)
cost of any asset - correct answer ✔all costs incurred to bring the asset to its intended use
PPE - correct answer ✔property, plant, and equipment
land - correct answer ✔NOT subject to depreciation
Amortization - correct answer ✔represents use of intangible assets
depletion - correct answer ✔represents use of natural resources
basket purchase of assets - correct answer ✔when business purchase several types of fixed assets in a
group
