Accounting II Chapter 18
A business that records its equipment in accounts such as office equipment and store equipment is applying the what concept?
Adequate disclosure
Personal property
All property not classified as real property
Plant asset record
An accounting form on which a business records information about each plant asset
The value of real property determined by tax authorities for the purpose of calculating taxes is called the:
Assessed value
The original cost of a plant asset minus accumulated depreciation is known as the ------- of a plant asset.
Book value
Plant assets are assets that stay in the plant--they cannot be moved from the building
FALSE
A year is the smallest unit of time used to calculate depreciation.
FALSE (it's month)
Most plant assets are useful for how long?
For a limited period of time.
The amount paid for a plant asset is what?
Is debited to a plant asset account
Real property
Land and anything attached to the land (real estate)
Declining balance method of depreciation
Multiplying the book value by a constant depreciation rate at the end of each fiscal period
For tax purposes, state and federal governments define two kinds of property--real and ...
Personal
Gain on plant assets
Revenue that results when a plant asset is sold for more than book value
An accounting form on which a business records information about each plant asset is called a plant asset record.
TRUE
Real property is sometimes referred to as real estate.
TRUE
Some governmental units tax personal property such as cars, boats, trailers, and airplanes.
TRUE
Using the straight line methods of depreciation requires the business to know the estimated salvage value as well as the estimated useful life of the asset.
TRUE
Accumulated depreciation for the first year is:
The annual depreciation expense for the first year
The tax rate used to calculate property taxes is multiplied by;
The assets assessed value
Generally accepted accounting principles require that the cost of a plant asset be expensed over:
The assets useful life
Loss on plant assets
The loss that results when a plant asses is sold for less than book value
Assessed value
The value of an asset enter mined by tax authorities for the purpose of calculating taxes