MBA 601 Exam 2 | Questions and Answers | 2025 Update | 100% Correct.
Question 1 3..33 pts
Which of the following would be classified as a tangible asset?
Land
Goodwill
Copyright
Trademark
Question 2 3..33 pts
Which of the following would not be classified as property, plant and equipment
(PP&E)?
Computers
Buildings
Land
Office Equipment
All of the options are considered as property, plant and equipment.(PP&E).
Question 3 3..33 pts
Which of the following terms is used to describe the process of expense
recognition for property, plant and equipment?
Amortization
Depreciation
, Depletion
Revision
correct Question 4 .33 pts
Harding Corporation acquired real estate that contained land, building and
equipment. The property cost Harding $1,900,000. Harding paid $350,000 and
issued a note payable for the remainder of the cost. An appraisal of the property
reported the following values: Land, $374,000; Building, $1,100,000 and
Equipment, $726,000.
What value will be reported for the building on the balance sheet?
175,000
950,000
800,000
1,100,000
Question 5 3..33 pts
Flagler Company purchased equipment that cost $90,000. The equipment had
a useful life of 5 years and a $10,000 salvage value. Flagler uses the double-
declining-balance method. Which of the following choices accurately reflects
how the recognition of the first year's depreciation would affect the elements of
the financial statements?
Stk.
Assets = Liab. + Rev. − Exp. = Net Inc. Stmt of Cash Flows
Equity
A. (32,000) NA (32,000) NA 32,000 (32,000) (32,000) OA
B. (16,000) NA (16,000) NA 16,000 (16,000) NA
C. (36,000) NA (36,000) NA 36,000 (36.000) (36,000) OA
D. (36,000) NA (36,000) NA 36,000 (36,000) NA
Question 1 3..33 pts
Which of the following would be classified as a tangible asset?
Land
Goodwill
Copyright
Trademark
Question 2 3..33 pts
Which of the following would not be classified as property, plant and equipment
(PP&E)?
Computers
Buildings
Land
Office Equipment
All of the options are considered as property, plant and equipment.(PP&E).
Question 3 3..33 pts
Which of the following terms is used to describe the process of expense
recognition for property, plant and equipment?
Amortization
Depreciation
, Depletion
Revision
correct Question 4 .33 pts
Harding Corporation acquired real estate that contained land, building and
equipment. The property cost Harding $1,900,000. Harding paid $350,000 and
issued a note payable for the remainder of the cost. An appraisal of the property
reported the following values: Land, $374,000; Building, $1,100,000 and
Equipment, $726,000.
What value will be reported for the building on the balance sheet?
175,000
950,000
800,000
1,100,000
Question 5 3..33 pts
Flagler Company purchased equipment that cost $90,000. The equipment had
a useful life of 5 years and a $10,000 salvage value. Flagler uses the double-
declining-balance method. Which of the following choices accurately reflects
how the recognition of the first year's depreciation would affect the elements of
the financial statements?
Stk.
Assets = Liab. + Rev. − Exp. = Net Inc. Stmt of Cash Flows
Equity
A. (32,000) NA (32,000) NA 32,000 (32,000) (32,000) OA
B. (16,000) NA (16,000) NA 16,000 (16,000) NA
C. (36,000) NA (36,000) NA 36,000 (36.000) (36,000) OA
D. (36,000) NA (36,000) NA 36,000 (36,000) NA
