ACCT 2300 Exam 4 TTU Questions with Correct Answers Latest Update 2025/2026
A disclosure of a contingent liability in the footnotes means the obligation is... - Answers
Possible
Difference between Accounts Payable and Notes Payable - Answers Notes Payable charges
interest.
Lawsuit with no dollar amounts assigned to the case. - Answers Contingent Liability
Sales Tax - Answers Given to the State!
Warranty Payable - Answers represents the liability account set up when warranty expense is
recognized and is used to account for warranty work performed in the future
What kind of liability is a warranty payable? - Answers Estimated Liability
Patents - Answers 20 Years
According to GAAP, Goodwill is recorded as... - Answers A loss only when the goodwill is losing
value.
Equipment, Buildings, and Vehicles = - Answers Depreciated
Why are contingent liabilities considered unique and different from all other liabilities? -
Answers Because it depends on if the company has obligation on the result of a future event.
What is an intangible asset only received when acquiring a company? - Answers Goodwill
When as asset is fully depreciated, how doe it remain on the balance sheet? - Answers As a "
Cost - Accumulated Depreciation "
When paying off a warranty, what are you using? - Answers You are using the estimated
warranty expense account and taking from it.
Accumulated Depreciation - Answers A "contra asset" account representing the total
depreciation taken to date. (Natural Credit Balance)
Contingent Liabilities - Answers Either Current or Long-Term
Patents, Copyrights, and Trademarks = - Answers Amoritzed
Research and Development = - Answers Expensed and becomes a part of the Income Statement
What is a purchased phone with warranty considered? - Answers Estimated Liability
Intagible - Answers Assets that CANNOT be touched.
When iron is being extracted... - Answers there will be a debit to iron inventory because it is
, being added to it.
Fixing a company machine = - Answers A repairs and maintenance expense
What do you do when an obligation is Remote? - Answers No action is necessary in the
accounting treatment.
Minerals, Timber, and Coal = - Answers Depleted
Depreciation - Answers Decreasing book value due to use
straight line depreciation - Answers (cost - salvage value) / (1/useful life)
double declining depreciation - Answers (cost-accumulated depreciation) x (2/useful life)
units of production method - Answers (cost - residual value) / (1/useful life in units) then
multiplied by units produced
Residual Value (Salvage Value) - Answers the expected value of a depreciable asset at the end
of its useful life
Closing Book Value - Answers Carrying Amount
What method has expense higher in the early years? - Answers Double-Declining Depreciation
Method
Asset Cost = - Answers What you initially paid
When is residual value ignored? - Answers During, Double-Declining Depreciation Method
Fixed Assets - Answers Long-term assets that are relatively permanent such as land, buildings,
or equipment.
Expenses are recorded when - Answers as they are incurred
Depreciation Journals = - Answers Adjusting Entires
When are assets capitalized? - Answers For Depreciation
What is known about the straight line method? - Answers It is the simplest method.
What is known about the units of production method? - Answers It mirrors the actual physical
use of an asset.
Opening Book Value - Dep. Exp. = - Answers Net Book Value
Copyright = - Answers 70 Years
Payable means - Answers liability / normal credit balance
A disclosure of a contingent liability in the footnotes means the obligation is... - Answers
Possible
Difference between Accounts Payable and Notes Payable - Answers Notes Payable charges
interest.
Lawsuit with no dollar amounts assigned to the case. - Answers Contingent Liability
Sales Tax - Answers Given to the State!
Warranty Payable - Answers represents the liability account set up when warranty expense is
recognized and is used to account for warranty work performed in the future
What kind of liability is a warranty payable? - Answers Estimated Liability
Patents - Answers 20 Years
According to GAAP, Goodwill is recorded as... - Answers A loss only when the goodwill is losing
value.
Equipment, Buildings, and Vehicles = - Answers Depreciated
Why are contingent liabilities considered unique and different from all other liabilities? -
Answers Because it depends on if the company has obligation on the result of a future event.
What is an intangible asset only received when acquiring a company? - Answers Goodwill
When as asset is fully depreciated, how doe it remain on the balance sheet? - Answers As a "
Cost - Accumulated Depreciation "
When paying off a warranty, what are you using? - Answers You are using the estimated
warranty expense account and taking from it.
Accumulated Depreciation - Answers A "contra asset" account representing the total
depreciation taken to date. (Natural Credit Balance)
Contingent Liabilities - Answers Either Current or Long-Term
Patents, Copyrights, and Trademarks = - Answers Amoritzed
Research and Development = - Answers Expensed and becomes a part of the Income Statement
What is a purchased phone with warranty considered? - Answers Estimated Liability
Intagible - Answers Assets that CANNOT be touched.
When iron is being extracted... - Answers there will be a debit to iron inventory because it is
, being added to it.
Fixing a company machine = - Answers A repairs and maintenance expense
What do you do when an obligation is Remote? - Answers No action is necessary in the
accounting treatment.
Minerals, Timber, and Coal = - Answers Depleted
Depreciation - Answers Decreasing book value due to use
straight line depreciation - Answers (cost - salvage value) / (1/useful life)
double declining depreciation - Answers (cost-accumulated depreciation) x (2/useful life)
units of production method - Answers (cost - residual value) / (1/useful life in units) then
multiplied by units produced
Residual Value (Salvage Value) - Answers the expected value of a depreciable asset at the end
of its useful life
Closing Book Value - Answers Carrying Amount
What method has expense higher in the early years? - Answers Double-Declining Depreciation
Method
Asset Cost = - Answers What you initially paid
When is residual value ignored? - Answers During, Double-Declining Depreciation Method
Fixed Assets - Answers Long-term assets that are relatively permanent such as land, buildings,
or equipment.
Expenses are recorded when - Answers as they are incurred
Depreciation Journals = - Answers Adjusting Entires
When are assets capitalized? - Answers For Depreciation
What is known about the straight line method? - Answers It is the simplest method.
What is known about the units of production method? - Answers It mirrors the actual physical
use of an asset.
Opening Book Value - Dep. Exp. = - Answers Net Book Value
Copyright = - Answers 70 Years
Payable means - Answers liability / normal credit balance
