ACTG 210 Smartbook 8
A company sells a machine that cost $7,000 for $500 cash. The machine had $6,500 accumulated depreciation. The entry to record this transaction will include which of the following entries? Multiple select question. - Credit to Machinery for $7,000. - Credit to Gain on Sale of Machinery for $500. - Debit to Cash for $500. - Debit to Accumulated Depreciation - Machinery for $6,500. - Credit to Cash for $500. - Debit to Machinery for $7,000. - Credit to Accumulated Depreciation - Machinery for $6,500. - Debit to Loss on Sale of Machinery for $500.
- Credit to Machinery for $7,000. - Debit to Cash for $500. - Debit to Accumulated Depreciation - Machinery for $6,500.
Which of the following situations will result in recognizing a gain on sale of a plant asset? Multiple choice question. - An asset with book value of $2,000 is sold for $2,000. - An asset that cost $5,000 with accumulated depreciation of $3,000 is sold for $1,500. - A fully depreciated asset is sold for $1,000. - An asset with a book value of $2,000 is sold for $1,500. - A fully depreciated asset is discarded.
A fully depreciated asset is sold for $1,000.
The exclusive right to publish or sell a musical, literary, or artistic work during the life of the creator plus 70 years is called a ______________.
Field 1: copyright
A plant asset is (depreciated/discarded/obsolete) _______________ when it is no longer useful to the company, and it has no market value.
Field 1: discarded
A company acquires a patent for $20,000 to manufacture and sell an item. The company intends to hold the patent for 5 years. Amortization for the first year will be recorded with a debit to Amortization Expense for $_______________.
Field 1: 4000
______ are nonphysical assets used in operations that give companies long-term rights, or competitive advantages. Multiple choice question. - Current assets - Intangible assets - Plant assets - Natural resource
Intangible assets
Sanson Co. sells equipment for $1,000 cash. The equipment cost Sanson $6,500 and has accumulated depreciation of $2,000 at the time of sale. Sanson will record the sale with a debit to which account and for how much? Multiple choice question. - Gain on Sale of Equipment for $3,500. - Loss on Sale of Equipment for $3,500. - Equipment for $1,000. - Equipment for $6,500.
Loss on Sale of Equipment for $3,500.
Copyrights, trademarks, and other intangible assets are expensed over their useful lives through the process of: Multiple choice question. - impairment - amortization - depletion - depreciation
amortization
If an intangible asset has a limited life, its cost is systematically allocated to expense over its useful life through the process of: Multiple choice question. - amortization - depletion - depreciation - impairment
amortization
A company owns an asset that is fully depreciated. The asset is no longer being used in operations and has no market value. The company has decided to Blank______ the asset by recording an entry to remove it from the balance sheet. Multiple choice question. - discard - take a loss on - depreciate
discard
Intangible assets that continue indefinitely into the future and are not amortized. The values of these assets are tested annually for Blank______. Multiple choice question. - depreciation - impairment - amortization - depletion
impairment
If an intangible asset has a(n)_________ is not amortized. Multiple choice question. - indefinite life - definite life - useful life - competitive life
indefinite life
Bilos Co. purchased a patent on a newly developed technology. They will recognize the cost of this patent: Multiple choice question. - over the asset's life using amortization expense - immediately, using patent expense - over the asset's life using depreciation expense - immediately, using depletion expense
over the asset's life using amortization expense
A ___________ is an exclusive right granted to its owner to manufacture and sell an item or use a process for 20 years. Multiple choice question. - leasehold - goodwill - patent - copyright
patent
