# Accounting 1 chapter 9 practice quiz

Total word count: 1019
Pages: 4

### Calculate the Price

- -
275 words
Looking for Expert Opinion?
Let us have a look at your work and suggest how to improve it!
 All except which of the following will be included in the cost of a fixed asset? mistakes in installation All of the following are considered fixed assets except copyrights Which of the following is the account that will be used to transfer the fixed asset cost to an expense? depreciation expense The estimated value of an asset at the end of its useful life is called all of the following except book value The Cardinal Industries purchased a generator which cost \$11,000. It has an estimated life of 5 years and a residual value of \$1,000. It is estimated that it will be good for 5,000 hours. Compute the depreciation expense for the first full year using the straight-line method of depreciation. Feedback: Correct. \$11,000 – \$1,000 = \$10,000 / 5 years = \$2,000 depreciation per year \$2,000 The Cardinal Industries purchased a generator which cost \$11,000. It has an estimated life of 5 years and a residual value of \$1,000. It is estimated that it will be good for 5,000 hours. Compute the depreciation expense for the first year using the units-of-production method of depreciation if the generator was used for 1,040 hours. Feedback: Correct. \$11,000 – \$1,000 = \$10,000 / 5,000 hours = \$2.00 per hour × 1,040 hours = \$2,080. \$2,080 Which of the following is NOT one of the factors used to determine depreciation expense? All of the choices are correct A machine was purchased at a cost of \$78,000. The equipment had an estimated useful life of 5 years and a residual value of \$3,000. Assuming the equipment was sold at the end of year 4 for \$8,000, determine the gain or loss on the sale of equipment. (Assume the straight-line depreciation method.) Feedback: Correct. (\$78,000 – \$3,000) / 5 = \$15,000. \$15,000 × 4 = \$60,000. \$78,000 – \$60,000 = \$18,000. \$8,000 – \$18,000 = (\$10,000) loss. Accumulated depreciation 60,000 Cash 8,000 Loss on sale of asset 10,000 Machine 78,000 a loss of \$10,000 Equipment was purchased at a cost of \$78,000. The equipment had an estimated useful life of 5 years and a residual value of \$3,000. Assuming the equipment was sold at the end of year 4 for \$8,000, which of the following will be included in the journal entry? (Assume the straight-line depreciation method.) Accumulated depreciation, debit \$60,000 An asset with a net book value of \$4,725 was discarded, having no market value. How much will be recorded as a loss or gain on disposal? loss of \$4,725 A fixed asset should be removed from the accounts except when it is fully depreciated Which of the following statements is true regarding goodwill? In a purchase of a business at a price in excess of the fair value of its net assets, goodwill is recorded as the excess. The best definition of a patent is the exclusive right to produce and sell goods with one or more unique features. The best definition of a copyright is the exclusive right to publish and sell literary, artistic, or musical compositions All of the following will be found under the caption of "property, plant, and equipment" in the balance sheet except trademark Tangible and intangible assets are normally presented on the balance sheet as They will be listed separately as property, plant, and equipment and intangible assets. Intangible assets are reported on the balance sheet after the fixed assets A copy machine was purchased for \$35,000. It is estimated that the machine will have a useful life of 4 years with a residual value of \$3,000. How much will be depreciated during the first full year using the straight-line method of depreciation? \$8,000 Feedback: Correct. (\$35,000 – \$3,000) /4 = \$8,000 A copy machine was purchased for \$35,000. It is estimated that the machine will have a useful life of 4 years with a residual value of \$3,000. It is estimated that the machine will make 2,000,000 copies. Using the units-of-output method to depreciate the copy machine, how much will be depreciated if during the first year 550,000 copies were made? \$8,800 Which of the following is not depreciated? land A machine was purchased at a cost of \$52,000. The equipment had an estimated useful life of 7 years and had a residual value of \$3,000. Assuming the equipment was sold at the end of year 6 for \$14,000, which of the following will be included in the journal entry? (Assume the straight-line depreciation method.) Accumulated depreciation, debit \$42,000 Which of the following will be classified as a fixed asset in a movie theater? a popcorn machine If the asset is long lived but not used in a productive manner it will be classified as an investment The Cardinal Industries purchased a generator which cost \$11,000. It has an estimated life of 5 years and a residual value of \$1,000. It is estimated that it will be good for 5,000 hours. Compute the depreciation expense for the second year using the double-declining-balance method of depreciation. \$2,640 The best definition of a trademark is a name, term, or symbol used to identify a business or its product. Which of the following statements is true regarding goodwill? In a purchase of a business at a price in excess of the fair value of its net assets, goodwill is recorded as the excess. The expensing of intangible assets is called amortization A copy machine was purchased for \$35,000. It is estimated that the machine will have a useful life of 4 years with a residual value of \$3,000. It is estimated that the machine will make 2,000,000 copies. Using the units-of-output method to depreciate the copy machine, how much will be depreciated if during the first year 550,000 copies were made? \$8,800 A machine was purchased at a cost of \$70,000. The equipment had an estimated useful life of 8 years and had a residual value of \$6,000. Assuming the equipment was sold at the end of year 6 for \$14,000, determine the gain or loss on the sale of the equipment. (Assume the straight-line depreciation method.) a loss of \$8,000 Feedback: Correct. (\$70,000 – \$6,000) / 8 = \$8,000. \$8,000 × 6 = \$48,000. \$70,000 – \$48,000 = \$22,000.\$22,000 – \$14,000 = \$8,000 loss. Accumulated depreciation 48,000 Cash 14,000 Loss on sale of asset 8,000 Machine 70,000 In regards to discarding fixed assets, which of the following is not true? If an asset has not been fully depreciated, depreciation should not be recorded before removing the asset from the accounting records Amortization and depreciation will be found on the income statement as separate expenses.

### More flashcards like this

#### NCLEX 10000 Integumentary Disorders

When assessing a client with partial-thickness burns over 60% of the body, which finding should the nurse report immediately? a) ...

#### NCLEX 300-NEURO

A client with amyotrophic lateral sclerosis (ALS) tells the nurse, "Sometimes I feel so frustrated. I can’t do anything without ...

#### NASM Flashcards

Which of the following is the process of getting oxygen from the environment to the tissues of the body? Diffusion ...

## Unfinished tasks keep piling up?

Let us complete them for you. Quickly and professionally.

Check Price 