ACCT 201A EXAM #2 QUESTIONS AND
ANSWERS|LATEST 2026 RELEASE |
ALREADY GRADED A+|SURE TO PASS
1. **Which of the following are long-term tangible assets?**
Property and Equipment
2. **The purchase price and all costs to bring an asset to its desired condition and
location for use should be ______.**
Capitalized
3. **Larry purchases land to be used for a new corporate headquarters. Which of
the following items are capitalized in the cost of land?**
Grading the land, Costs to remove an old building, Legal fees to secure title,
Title insurance
4. **An asset that has no physical substance is referred to as a(n) ______.**
Intangible asset
5. **Which of the following items are initially recorded as an expense on the
income statement?**
Research and development costs, Advertising costs
6. **Long-term tangible assets include:**
Buildings, Land, Equipment
7. **The exclusive legal right to manufacture a product or to use a process is called
a(n) ____.**
Patent
1
,8. **The initial cost of property, plant, and equipment includes the purchase price
and all expenditures necessary to bring the asset to its desired condition and
location for use.**
True
9. **A(n) ____ is protected by law and gives the creator of a published work the
exclusive rights to reproduce and sell the work for the life of the creator plus 70
years.**
Copyright
10. **Sarah purchases land to be used for a new storage facility. Which of the
following items are capitalized in the cost of land?**
Commissions, Costs to remove an old building, Legal fees to secure title
11. **An asset that has no physical substance is called a(n) ____ asset.**
Intangible
12. **An exclusive right to display a word, slogan, symbol, or emblem that
distinctively identifies a company, product, or service is referred to as a:**
Trademark
13. **A(n) ____ is the exclusive right to manufacture a product or use a process
granted for a period of ____ years.**
Patent, 20
14. **Which of the following are expenditures for assets subsequent to
acquisition?**
Additions, Repairs and maintenance, Improvements
2
, 15. **A(n) ____ is an exclusive right of protection given to a creator of a
published work, such as a song, film, painting, photograph, or book.**
Copyright
16. **The allocation of the cost of a tangible asset over its service life is referred to
as ____.**
Depreciation
17. **A(n) ____ is an exclusive right to display a word, slogan, symbol, or
emblem that distinctively identifies a company, product, or service.**
Trademark
18. **When we recognize depreciation, we allocate a portion of the asset's cost to
each year in which the asset**
provides benefits to the company.
19. **Which of the following items are initially recorded as an expense on the
income statement?**
Advertising costs, Research and development costs
20. **The types of expenditures that can occur subsequent to an asset's acquisition
are**
Repairs and maintenance, Additions, Improvements
21. **The allocation of the cost of a tangible fixed asset is referred to as ____,
whereas the allocation of the cost of an intangible asset is referred to as ____.**
Depreciation, Amortization
3
ANSWERS|LATEST 2026 RELEASE |
ALREADY GRADED A+|SURE TO PASS
1. **Which of the following are long-term tangible assets?**
Property and Equipment
2. **The purchase price and all costs to bring an asset to its desired condition and
location for use should be ______.**
Capitalized
3. **Larry purchases land to be used for a new corporate headquarters. Which of
the following items are capitalized in the cost of land?**
Grading the land, Costs to remove an old building, Legal fees to secure title,
Title insurance
4. **An asset that has no physical substance is referred to as a(n) ______.**
Intangible asset
5. **Which of the following items are initially recorded as an expense on the
income statement?**
Research and development costs, Advertising costs
6. **Long-term tangible assets include:**
Buildings, Land, Equipment
7. **The exclusive legal right to manufacture a product or to use a process is called
a(n) ____.**
Patent
1
,8. **The initial cost of property, plant, and equipment includes the purchase price
and all expenditures necessary to bring the asset to its desired condition and
location for use.**
True
9. **A(n) ____ is protected by law and gives the creator of a published work the
exclusive rights to reproduce and sell the work for the life of the creator plus 70
years.**
Copyright
10. **Sarah purchases land to be used for a new storage facility. Which of the
following items are capitalized in the cost of land?**
Commissions, Costs to remove an old building, Legal fees to secure title
11. **An asset that has no physical substance is called a(n) ____ asset.**
Intangible
12. **An exclusive right to display a word, slogan, symbol, or emblem that
distinctively identifies a company, product, or service is referred to as a:**
Trademark
13. **A(n) ____ is the exclusive right to manufacture a product or use a process
granted for a period of ____ years.**
Patent, 20
14. **Which of the following are expenditures for assets subsequent to
acquisition?**
Additions, Repairs and maintenance, Improvements
2
, 15. **A(n) ____ is an exclusive right of protection given to a creator of a
published work, such as a song, film, painting, photograph, or book.**
Copyright
16. **The allocation of the cost of a tangible asset over its service life is referred to
as ____.**
Depreciation
17. **A(n) ____ is an exclusive right to display a word, slogan, symbol, or
emblem that distinctively identifies a company, product, or service.**
Trademark
18. **When we recognize depreciation, we allocate a portion of the asset's cost to
each year in which the asset**
provides benefits to the company.
19. **Which of the following items are initially recorded as an expense on the
income statement?**
Advertising costs, Research and development costs
20. **The types of expenditures that can occur subsequent to an asset's acquisition
are**
Repairs and maintenance, Additions, Improvements
21. **The allocation of the cost of a tangible fixed asset is referred to as ____,
whereas the allocation of the cost of an intangible asset is referred to as ____.**
Depreciation, Amortization
3
