ACC 557 Week 7 Quiz
Popular in Department
This 0 page Study Guide was uploaded by an elite notetaker on Wednesday November 11, 2015. The Study Guide belongs to fin571 at Kaplan University taught by in Fall 2015. Since its upload, it has received 31 views.
Reviews for ACC 557 Week 7 Quiz
Report this Material
What is Karma?
Karma is the currency of StudySoup.
Date Created: 11/11/15
1 Multiple Choice Question 214 A company has the following assets Buildings and Equipment less accumulated depreciation of 2000000 7600000 Copyrights 960000 Patents 4000000 Timberlands less accumulated depletion of 2800000 4800000 The total amount reported under Property Plant and Equipment would be 16400000 13360000 12400000 17360000 2 Multiple Choice Question 144 Expenditures that maintain the operating ef ciency and expected productive life of a plant asset are generally in expensed when incurred r not recorded until they become material in amount p capitalized as a part of the cost of the asset p debited to the Accumulated Depreciation account 3 Multiple Choice Question 149 A gain or loss on disposal of a plant asset is determined by comparing the p original cost of the asset with the proceeds received from its sale p book value of the asset with the asset39s original cost p book value of the asset with the proceeds received from its sale p replacement cost of the asset with the asset39s original cost IFRS Multiple Choice Question 326 Salem Company hired Kirk Construction to construct an of ce building for 8000000 on land costing 2000000 which Salem Company owned The building was complete and ready to be used on January 1 2013 and it has a useful life of 40 years The price of the building included land improvements costing 600000 and personal property costing 750000 The useful lives of the land improvements and the personal property are 10 years and 5 years respectively Salem Company uses component depreciation and the company uses straightline depreciation for other similar assets What is the net amount reported for the building on Salem Company39s December 31 2013 statement of nancial position a 7573750 p 6483750 p 7800000 p 7665000 Multiple Choice Question 77 Yocum Company purchased equipment on January 1 at a list price of 100000 with credit terms 210 n30 Payment was made within the discount period and Yocum was given a 2000 cash discount Yocum paid 5000 sales tax on the equipment and paid installation charges of 1760 Prior to installation Yocum paid 4000 to pour a concrete slab on which to place the equipment What is the total cost of the new equipment in 104760 p 108760 r 110760 r 101000 6 Multiple Choice Question 98 A company purchased factory equipment for 350000 It is estimated that the equipment will have a 35000 salvage value at the end of its estimated 5year useful life If the company uses the double decliningbalance method of depreciation the amount of annual depreciation recorded for the second year after purchase would be P 84000 in 140000 in 126000 60480 Multiple Choice Question 175 On a balance sheet natural resources may be described more speci cally as all of the following except oil reserves fa timberlands a land improvements mineral deposits 8 Multiple Choice Question 98 On January 1 2013 Donahue Company a calendaryear company issued 500000 of notes payable of which 125000 is due on January 1 for each of the next four years The proper balance sheet presentation on December 31 2013 is Current LiabilitiesI 12500039I Longterm DebtI 375000 Current Liabilities 375000 Longterm Debt 125000 Current Liabilities 500000 Longterm Debt 500000 9 Multiple Choice Question 76 When an interestbearing note matures the balance in the Notes Payable account is less than the total amount rmid bv the borrower P the difference between the maturity value of the note and the face value of the note r equal to the total amount repaid by the borrower r greater than the total amount repaid by the borrower P 10Multiple Choice Question 125 From the standpoint of the issuing company a disadvantage of using bonds as a means of longterm nancing is that interest must be paid on a periodic basis regardless of earnings r the bondholders do not have voting rights r income to stockholders may increase as a result of trading on the equity r bond interest is deductible for tax purposes 15 F Multiple Chc Question 61 Most companies pay current liabilities by creating longterm liabilities rs P out of current assets qr F by issuing interestbearing notes payable rt if by issuing stock F F F F F