Chapter 7

At what amount should Sandwich Express record the bread machine?

$25,200

Equipment originally costing $95,000 has accumulated depreciation of $30,000. If it sells the equipment for $55,000, the company should record

A loss of $10,000

The book value of an asset is equal to the:

asset's cost less accumulated depreciation

We normally record a long-term asset at the

cost of the asset plus all costs necessary to get the asset ready for use

The return on assets is equal to the

profit margin times asset turnover

Research and development costs generated internally:

should be expensed

Which of the following will maximize net income by minimizing depreciation expense in the first year of the asset's life?

Long service life, high residual value, and straight-line depreciation

Which of the following expenditures should be recorded as an expense?

Repairs and maintenance that maintain current benefits

The balance in the Accumulated Depreciation account represents

The amount charged to depreciation expense since the acquisition of the plant asset

Which of the following statements is true regarding the amortization of intangible assets?

The expected residual value of most intangible assets is zero