11) An example of an intangible asset is:
C) coal mine.
12) Long-lived tangible assets that are used in the operation of the business are called:
A) intangible assets.
B) natural resources.
C) plant assets.
13) The only plant asset that does not depreciate is:
A) office supplies.
14) An asset with no physical form, but that has special rights to current and expected future benefits is a(n):
A) intangible asset.
B) natural resource.
C) plant asset.
D) fixed asset.
15) Which of the following is a natural resource?
C) gas reserves
D) both B and C
16) All amounts paid to acquire a plant asset and to get it ready for its intended use are referred to as:
A) set up costs.
C) maintenance expense.
D) the cost of an asset.
17) Company A purchased a used piece of equipment. All of the following costs should be included in the cost of the equipment EXCEPT for:
A) insurance while in transit.
B) sales tax paid.
C) installation costs.
D) maintenance costs after the equipment is up and running.
18) Which of the following should be included in the cost of land?
A) Construction cost of a parking lot
C) Real estate brokerage commission
19) Company B purchased some land and is preparing the land for a new building. Company B should include which of the following in the cost of the land?
A) Cost of driveways
B) Cost of fencing
C) Cost of sprinkler systems for the shrubbery
D) Grading and clearing the land
20) ABC Company purchased land with an old building that they plan on demolishing so that they can construct a new, modern building. The cost of demolishing the building will be part of the cost of the:
A) new building.
B) old building.
D) land improvements.