ACC 291 Chapter 9 || A+ Certified.
If a plant asset is retired before it is fully depreciated and no salvage value is received, a ______
on disposal occurs. correct answers loss
Where is the loss on disposal of a plant asset reported in the financial statements?
A : as a direct decrease to the capital account on the balance sheet
B : as a direct increase to the capital account on the balance sheet
C : in the Other Expenses and Losses section of the income statement
D : in the Other Revenues and Gains section of the income statement correct answers C
To find the asset turnover ratio, divide
A:
net income by average total assets
B:
net income by ending total assets
C:
net sales by average total assets
D:
net sales by ending total assets correct answers C
,The cost of intangible assets with ___________ should not be amortized. correct answers
indefinite lives
Companies can amortize a patent for a period that cannot exceed
A:
20 years
B:
50 years
C:
10 years
D:
40 years correct answers A
A patent that has a legal life of 20 years and a useful life of less than 20 years should
A:
be amortized over its useful life
B:
be amortized over 20 years regardless of its useful life
C:
, be expensed in the year of acquisition
D:
not be amortized correct answers A
Companies usually show intangible assets separately under "Intangible assets."
A:
True
B:
False correct answers TRUE
Which of the following should be disclosed in the balance sheet or the notes to the financial
statements?
A:
balances of the major classes of assets
B:
amount of depreciation and amortization expense for the period
C:
depreciation and amortization methods used
D:
all of the choices are correct correct answers D
If a plant asset is retired before it is fully depreciated and no salvage value is received, a ______
on disposal occurs. correct answers loss
Where is the loss on disposal of a plant asset reported in the financial statements?
A : as a direct decrease to the capital account on the balance sheet
B : as a direct increase to the capital account on the balance sheet
C : in the Other Expenses and Losses section of the income statement
D : in the Other Revenues and Gains section of the income statement correct answers C
To find the asset turnover ratio, divide
A:
net income by average total assets
B:
net income by ending total assets
C:
net sales by average total assets
D:
net sales by ending total assets correct answers C
,The cost of intangible assets with ___________ should not be amortized. correct answers
indefinite lives
Companies can amortize a patent for a period that cannot exceed
A:
20 years
B:
50 years
C:
10 years
D:
40 years correct answers A
A patent that has a legal life of 20 years and a useful life of less than 20 years should
A:
be amortized over its useful life
B:
be amortized over 20 years regardless of its useful life
C:
, be expensed in the year of acquisition
D:
not be amortized correct answers A
Companies usually show intangible assets separately under "Intangible assets."
A:
True
B:
False correct answers TRUE
Which of the following should be disclosed in the balance sheet or the notes to the financial
statements?
A:
balances of the major classes of assets
B:
amount of depreciation and amortization expense for the period
C:
depreciation and amortization methods used
D:
all of the choices are correct correct answers D
