Help
Options
Didn't know it?
click below
click below
Knew it?
click below
click below
Don't Know
Remaining cards (0)
Know
retry
shuffle
restart
0:00
Embed Code - If you would like this activity on your web page, copy the script below and paste it into your web page.
Normal Size Small Size show me how
Normal Size Small Size show me how
WGU FNC1 Chpt 9
FNC1 Chpt 9 Practice Questions
| Question | Answer |
|---|---|
| Which cost is NOT recorded as part of the cost of a building | Annual building maintenance |
| British Tran bought four used Unlimited Airline airplanes. Each plan worth $39 million, but the owner sold the combination for $144 million. How much is British Tran's cost of each plan? | $36 million |
| How should you record a capital expenditure? | Debit capital |
| Which method almost always produces the most depreciation in the first year? | Double-declining-balance |
| U-Airlines jet cost $42 mil. It's expected to fly 370 mil miles during its 8-year life. Residual value is expected to be zero, the plane was used when acquired. If the plane travels 39 mil. miles the 1st year, how much is the depreciation under UP method. | 4.43 million |
| Which depreciation method would you generally prefer to use for income tax purpose? Why> | Double-declining-balance because it gives the fastest tax deductions for depreciation. |
| A copy machine cos $43,000 when new and has accumulated depreciation of $28,000. Suppose Johnson Printing junks this machine, receiving nothing. What is the result of the disposal transaction? | Loss of $15,000 |
| A copy machine cos $43,000 when new and has accumulated depreciation of $28,000. Suppose Johnson Printing sells this machine for $15,000? | no gain or loss |
| Which method is used to compute depletion? | Units-of-Production method |
| Which intangible asset is recorded only as part of the acquisition of another company? | Goodwill |
| Which of the following is NOT a plant asset | Copyright |
| The cost of a building would NOT include: | Clearing and grading the land prior to construction of the building |
| 500 acres of land are purchased for $130,000. Additional cost include $5,000 commission, $10,000 for removal of an old building, $6,000 for paving, and an $800 survey fee. What is the cost of the land? | $145,800 |
| Which of the following expenditures would be debited to an expense account? | Replacement of tires |
| What is the effect of treating a revenue expenditure as a capital expenditure? | Overstates assets and overstates owners' equity |
| What type of account it Accumulated depreciation? | A contra asset account |
| When the amount of use of a plant asset varies from year to year, which method of determining depreciation best matches reeves and expenses? | Units-of-production method |
| Which depreciation method generally results in the greatest depreciation expense in the first full year of an asset's life? | Double-declining-balance method |
Created by:
100003967420193
Popular Finance sets