Mizzou Accounting 2036 Exam 3
Actual Test Questions (2025-2026)
With All Solved Solutions.
tangible assets - Answer physical assets, such as real estate and automobiles, that can be
held for either consumption or investment purposes
Depreciation Expense - Answer The portion of the cost of a fixed asset that is recorded as an
expense each year of its useful life.
types of depreciation - Answer - straight-line
- units of production
- double declining balance
straight line depreciation - Answer (cost-residual value)x 1/useful life
Acquisition cost goes on the - Answer -balance sheet
-accumulated depreciation also goes on the balance sheet(contra asset)
Expense goes on the - Answer -income statement
-depreciation expense also goes on the balance sheet
Extraordinary repair accounting treatment - Answer capitalize
ordinary repair accounting treatment - Answer expense
units of production method - Answer (cost-residual value)actual production this
period/estimated total production
double declining balance method - Answer (cost-accumulated depreciation) x 2/useful life
financial reporting vs income tax reporting - Answer -large corporations and publicly traded
, -The difference between the two accounting methods is in the timing of when sales and
purchases are recorded based on either accrual or cash.
Most small businesses prefer to use the cash-based tax accounting. Choosing different
accounting methods can have different impacts on business and tax returns
finical reporting objective - Answer provide economic info about a business that's useful in
projecting its future cash flows
income tax reporting objective - Answer raise sufficient tax revenues to pay for the
expenditures of the federal government and to encourage certain social and economic
behaviors
a loss should be recognized when... - Answer an asset suffers a permanent impairment
How to dispose of tangible assets - Answer 1. update depreciate to date of disposal
2. record the disposal
intangible assets - Answer assets that do not have physical substance
Amortization - Answer the process of allocating to expense the cost of an intangible asset
Goodwill - Answer Goodwill is created when one company acquires another for a price
higher than the fair market value of its assets; for example, if Company A buys Company B for
more than the fair value of Company B's assets and debts, the amount left over is listed on
Company A's balance sheet as goodwill.
depreciation vs amortization - Answer -depreciation is for tangible assets
-amortization is for intangible assets
Turnover Analysis - Answer net sales revenue/AVERAGE net fixed assets
Turnover Analysis is - Answer the ration that measure the sales dollars generated by each
Actual Test Questions (2025-2026)
With All Solved Solutions.
tangible assets - Answer physical assets, such as real estate and automobiles, that can be
held for either consumption or investment purposes
Depreciation Expense - Answer The portion of the cost of a fixed asset that is recorded as an
expense each year of its useful life.
types of depreciation - Answer - straight-line
- units of production
- double declining balance
straight line depreciation - Answer (cost-residual value)x 1/useful life
Acquisition cost goes on the - Answer -balance sheet
-accumulated depreciation also goes on the balance sheet(contra asset)
Expense goes on the - Answer -income statement
-depreciation expense also goes on the balance sheet
Extraordinary repair accounting treatment - Answer capitalize
ordinary repair accounting treatment - Answer expense
units of production method - Answer (cost-residual value)actual production this
period/estimated total production
double declining balance method - Answer (cost-accumulated depreciation) x 2/useful life
financial reporting vs income tax reporting - Answer -large corporations and publicly traded
, -The difference between the two accounting methods is in the timing of when sales and
purchases are recorded based on either accrual or cash.
Most small businesses prefer to use the cash-based tax accounting. Choosing different
accounting methods can have different impacts on business and tax returns
finical reporting objective - Answer provide economic info about a business that's useful in
projecting its future cash flows
income tax reporting objective - Answer raise sufficient tax revenues to pay for the
expenditures of the federal government and to encourage certain social and economic
behaviors
a loss should be recognized when... - Answer an asset suffers a permanent impairment
How to dispose of tangible assets - Answer 1. update depreciate to date of disposal
2. record the disposal
intangible assets - Answer assets that do not have physical substance
Amortization - Answer the process of allocating to expense the cost of an intangible asset
Goodwill - Answer Goodwill is created when one company acquires another for a price
higher than the fair market value of its assets; for example, if Company A buys Company B for
more than the fair value of Company B's assets and debts, the amount left over is listed on
Company A's balance sheet as goodwill.
depreciation vs amortization - Answer -depreciation is for tangible assets
-amortization is for intangible assets
Turnover Analysis - Answer net sales revenue/AVERAGE net fixed assets
Turnover Analysis is - Answer the ration that measure the sales dollars generated by each
