Chapter 9 accounting

Which of the following is not true in regard to selling fixed assets? a. Accumulated Depreciation will be credited. b. The journal entry is similar to discarding fixed assets. c. The cash receipt is recorded. d. If the selling price is more than the book value, a gain is recorded.

a. Accumulated Depreciation will be credited.

The expensing of intangible assets is called a. amortization. b. depreciation. c. depletion. d. replenishing

a. amortization.

All of the following are considered fixed assets except a. copyrights. b. land. c. building. d. land improvements.

a. copyrights.

The calculation of depletion expense is a. Quantity Extracted × Estimated Useful Life. b. Depletion Rate × Quantity Extracted. c. Depletion Rate × Estimated Useful Life. d. None of these choices are correct.

b. Depletion Rate × Quantity Extracted.

Which of the following statements is true regarding goodwill? a. Goodwill is amortized based on a 10-year period. b. 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. c. Goodwill is the exclusive use of a name, term, or symbol used to identify a business or its product. d. Goodwill is amortized based on the lesser of the useful life or the legal life.

b. 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.

Which of the following fixed assets is not depreciated? a. Building b. Land c. Equipment d. None of these choices are correct.

b. Land

Which of the following is not one of the most common depreciation methods? a. Double-declining-balance method b. Sum-of-the-years-digits method c. Units-of-activity method d. Straight-line method

b. Sum-of-the-years-digits method

Which of the following will be classified as a fixed asset for a movie theater? a. Land for sale b. Trademark c. A popcorn machine d. The latest movie

c. A popcorn machine

Which of the following is not classified as an intangible asset? a. Goodwill b. Trademark c. Investment d. Patent

c. Investment

ll except which of the following will be included in the cost of a fixed asset? a. Freight costs b. Cost of installing equipment c. Mistakes in installation d. Direct costs of new construction

c. Mistakes in installation

All of the following assets will be included as intangible assets on the balance sheet except a. copyrights. b. goodwill. c. buildings. d. patents.

c. buildings.

The expensing of a natural resource is called a. depreciation. b. amortization. c. depletion. d. replenishing.

c. depletion.

Intangible assets are reported on the balance sheet a. before the current assets. b. before property, plant, and equipment. c. immediately after the property, plant, and equipment. d. immediately after the current assets.

c. immediately after the property, plant, and equipment.

All of the following are factors used in determining depreciation expense with the straight-line method except a. the asset's expected useful life. b. the asset's estimated residual value. c. the asset's initial cost. d. None of these choices are correct.

d. None of these choices are correct.

The journal entry to record depletion includes a a. debit to Accumulated Depletion. b. credit to Depletion Expense. c. credit to Accumulated Depreciation. d. debit to Depletion Expense.

d. debit to Depletion Expense.