Accounting

Lamar Printing Company determines that a printing press used in its operations has suffered a permanent impairment in value because of technological changes. An entry to record the impairment should

include a credit to the equipment accumulated depreciation account

Which of the following principles best describes the current method of accounting for research and development

Immediate recognition as an expense

Which type of intangible assets are amortized?

Limited-life intangible assets, but not indefinite life intangible assets

Goodwill

generated internally should be capitalized in the year it occurs

which of the following assets do NOT qualify for capitalization of interest costs incurred during construction of the assets?

Assets not currently undergoing the activities necessary to get them ready for use

A loss on impairment of an intangible asset is the difference between the asset's

cost basis and its far value

The cost of land does not include

costs of improvements with limited lives.

Termination of an asset's service due to theft, fire, etc., is called:

involuntary conversion

When a plant asset is acquired by issuance of common stock, the cost of the plant asset is properly measured by the

par value of the stock

When an exchange of non-monetary assets has commercial substance, the cost of a nonmonetary asset acquired is usually recorded at

the fair value of the assets given (including cash) where gains and losses are recognized immediately

The term "depreciable base" or " depreciation base" as it is used in accounting, refers to

the total amount to be charged (debited) to expense over an asset's useful life

which of the following does NOT describe intangible assets?

they are financial instruments

which of the following describes intangible assets?

they provide long-term benefits they lack physical existence they are classified as long-term assets

Usually, companies compute depletion for accounting purposes using a

units-of-production method

If an industrial firm uses the units-of-production method for computing depreciation on its only plant asset, factory machinery, the credit to accumulated depreciation from period to period during the life of the firm will a. be constant. b. vary with unit sales. c. vary with sales revenue. d. vary with production.

vary with production