Mizzou 2036 Exam 3, Dr. P Latest Test
Questions with Correct Answers 2025-
2026 Graded A+.
Long-Lived Assets - Answer resources owned by a business that enable it to produce the
goods or services that are sold to customers.
Ex: machines, equipment, vehicles
Capitalize - Answer To record a cost as an asset, rather than an expense.
Ordinary repairs and maintenance - Answer expenditures for routine operating upkeep of
long-lived assets; they are recorded as expenses
Extraordinary repairs - Answer expenditures that extend the useful ife of a tangible asset or
improve its output in the future; they are recorded as increases in asset accounts, not as
expenses
Depreciation - Answer the allocation of the depreciable cost of long-lived tangible assets
over their productive lives using a systematic and rational method.
Recording depreciation expense - Answer Depreciation expense, is debited
Accumulated depreciation, is credited
useful life - Answer the expected service life of an asset to the present owner
Residual (or salvage) value - Answer the estimated amount to be recovered at the end of the
company's estimated useful life of an asset
Depreciable cost - Answer The portion of the asset's cost that will be used in generating
revenue; calculated as asset cost minus residual value
Straight-line depreciation method - Answer allocates the depreciable cost of an asset in
, Units-of-production method - Answer allocates the depreciable cost of an asset over it's
useful life based on the relationship of its output during the period to its total estimated output.
Units-of-production method equation - Answer (cost - residual value) x actual production
this period/ estimated total production
Declining-balance depreciation method - Answer assigns more depreciation to early years of
an asset's life and less depreciation to later years
Declining-balance depreciation method equation - Answer (cost -accumulated depreciation)
x 2/useful life
Impairment - Answer Occurs when the cash to be generated by an asset is estimated to be
less than the carrying value of that asset
Recording a resale of disposal of tangible assets - Answer Cash, debited
Accumulated depreciation, debited
equipment, credited
gain on disposal, credited
How to find Accumulated Depreciation? - Answer cost- residual value
Intangible Assets - Answer trademarks, copyrights, patents, technology, licensing rights,
franchises, goodwill
Net Assets - Answer shorthand term used to refer to assets minus liabilities
Amortization - Answer the process of allocating the cost of intangible assets over their
limited useful lives
Unlimited life - Answer intangibles with unlimited life or indefinite lives (trademarks and
goodwill) are not amortized
Limited life - Answer copyrights, patents, licensing rights, and franchises
Questions with Correct Answers 2025-
2026 Graded A+.
Long-Lived Assets - Answer resources owned by a business that enable it to produce the
goods or services that are sold to customers.
Ex: machines, equipment, vehicles
Capitalize - Answer To record a cost as an asset, rather than an expense.
Ordinary repairs and maintenance - Answer expenditures for routine operating upkeep of
long-lived assets; they are recorded as expenses
Extraordinary repairs - Answer expenditures that extend the useful ife of a tangible asset or
improve its output in the future; they are recorded as increases in asset accounts, not as
expenses
Depreciation - Answer the allocation of the depreciable cost of long-lived tangible assets
over their productive lives using a systematic and rational method.
Recording depreciation expense - Answer Depreciation expense, is debited
Accumulated depreciation, is credited
useful life - Answer the expected service life of an asset to the present owner
Residual (or salvage) value - Answer the estimated amount to be recovered at the end of the
company's estimated useful life of an asset
Depreciable cost - Answer The portion of the asset's cost that will be used in generating
revenue; calculated as asset cost minus residual value
Straight-line depreciation method - Answer allocates the depreciable cost of an asset in
, Units-of-production method - Answer allocates the depreciable cost of an asset over it's
useful life based on the relationship of its output during the period to its total estimated output.
Units-of-production method equation - Answer (cost - residual value) x actual production
this period/ estimated total production
Declining-balance depreciation method - Answer assigns more depreciation to early years of
an asset's life and less depreciation to later years
Declining-balance depreciation method equation - Answer (cost -accumulated depreciation)
x 2/useful life
Impairment - Answer Occurs when the cash to be generated by an asset is estimated to be
less than the carrying value of that asset
Recording a resale of disposal of tangible assets - Answer Cash, debited
Accumulated depreciation, debited
equipment, credited
gain on disposal, credited
How to find Accumulated Depreciation? - Answer cost- residual value
Intangible Assets - Answer trademarks, copyrights, patents, technology, licensing rights,
franchises, goodwill
Net Assets - Answer shorthand term used to refer to assets minus liabilities
Amortization - Answer the process of allocating the cost of intangible assets over their
limited useful lives
Unlimited life - Answer intangibles with unlimited life or indefinite lives (trademarks and
goodwill) are not amortized
Limited life - Answer copyrights, patents, licensing rights, and franchises
