ACC 557 WK 7 Chapter 9,10 Quiz - All Possible Questions
To Purchase Click Link Below:
http://strtutorials.com/ACC-557-WK-7-Chapter-910-Quiz-All-Possible-Questions-ACC5579.htm
ACC 557 WK 7 Chapter 9,10 Quiz - All Possible Questions
TRUE-FALSE STATEMENTS
1. All plant assets (fixed assets) must be depreciated for accounting purposes.
2. When purchasing land, the costs for clearing, draining, filling, and grading should be charged to a Land Improvements account.
3. When purchasing delivery equipment, sales taxes and motor vehicle licenses should be charged to Delivery Equipment.
4. Land improvements are generally charged to the Land account.
5. Once cost is established for a plant asset, it becomes the basis of accounting for the asset unless the asset appreciates in value, in which case, market value becomes the basis for accountability.
6. The book value of a plant asset is always equal to its fair market value.
7. Recording depreciation on plant assets affects the balance sheet and the income statement.
8. The depreciable cost of a plant asset is its original cost minus obsolescence.
9. Recording depreciation each period is an application of the expense recognition principle.
10. The Accumulated Depreciation account represents a cash fund available to replace plant assets.
11. In calculating depreciation, both plant asset cost and useful life are based on estimates.
12. Using the units-of-activity method of depreciating factory equipment will generally result in more depreciation expense being recorded over the life of the asset than if the straight-line method had been used.
13. Salvage value is not subtracted from plant asset cost in determining depreciation expense under the declining-balance method of depreciation.
14. The declining-balance method of depreciation is...