Exam 3 Prep: Chp 9 #2

All of the following fixed assets are depreciated EXCEPT: building. truck. land. equipment.

land

Assume that equipment acquired at a cost of $10,000 is fully depreciated. On June 30, the equipment is discarded. The entry to record the discard would be to debit __________ and credit __________.

Accumulated Depreciation—Equipment; Equipment

The entry to record the amortization of a patent would include a debit to __________ and a credit to __________.

Amortization Expense; Patents

Accumulated depreciation would be shown on which financial statement?

Balance sheet

Which of the depreciation methods is called an accelerated depreciation method? Straight-line method Double-declining-balance method Units-of-activity method All of these choices are correct.

Double-declining-balance method

All of the following are considered fixed assets EXCEPT: building. truck. land. accounts receivable.

accounts receivable.

Cost less accumulated depreciation equals

book value

The exclusive right to publish and sell a literary, artistic, or musical composition is granted by a

copyright

If a purchased item is long-lived but not used in normal operations, the asset is classified and recorded as a(n): fixed asset. investment. expense. contra asset.

investment.

The entry to record the sale of equipment at book value would include a __________ to _________

debit; Accumulated Depreciation

The difference between a fixed asset's initial cost and residual value is known as its: depreciable cost. book value. accumulated depreciation. net revenue.

depreciable cost