Exam 4 Acct 2101 questions with
complete solutions graded A+
straight line depreciation formula - ANS ✔✔(cost - salvage value) / useful life = Amortization
units of production formula - ANS ✔✔(Cost - Residual Value) / Estimated Total Production) x
Actual Production
Net Book Value (NBV) - ANS ✔✔original cost - accumulated depreciation
Interest Formula - ANS ✔✔principal x rate x time
On the first day of the current year, Griffin Company sold equipment for less than its book value.
Which of the following is part of the journal entry to record the sale? - ANS ✔✔A debit to Loss
on Sale of Plant Assets
Accounting for the periodic amortization of intangible assets is similar to which depreciation
method? - ANS ✔✔Straight line
An exclusive right to operate or sell a specific brand of products in a given geographic area is
called: - ANS ✔✔A franchise
Which of the following statements is false?
A- Betterment expenditures are a capital expenditure.
B- Expenditures to acquire low-cost assets are revenue expenditures.
C- Material additions to a plant asset are capital expenditures.
complete solutions graded A+
straight line depreciation formula - ANS ✔✔(cost - salvage value) / useful life = Amortization
units of production formula - ANS ✔✔(Cost - Residual Value) / Estimated Total Production) x
Actual Production
Net Book Value (NBV) - ANS ✔✔original cost - accumulated depreciation
Interest Formula - ANS ✔✔principal x rate x time
On the first day of the current year, Griffin Company sold equipment for less than its book value.
Which of the following is part of the journal entry to record the sale? - ANS ✔✔A debit to Loss
on Sale of Plant Assets
Accounting for the periodic amortization of intangible assets is similar to which depreciation
method? - ANS ✔✔Straight line
An exclusive right to operate or sell a specific brand of products in a given geographic area is
called: - ANS ✔✔A franchise
Which of the following statements is false?
A- Betterment expenditures are a capital expenditure.
B- Expenditures to acquire low-cost assets are revenue expenditures.
C- Material additions to a plant asset are capital expenditures.
