Info
Warning
Danger

Accounting Expert Answers, Study Resources & Learning Aids

The vast field of accounting contributes to one of the largest subjects in our study resources. Accounting flashcards, homework answers for textbooks & other learning aids can increase your competency in this domain instantly. Become a top student with our support. Search Now…

Ask an Expert

Our Experts can answer your tough homework and study questions.

Answers in as fast as 15 minutes
Post a Question
7.4   Learning Objective 7-4 1) To account for the disposal of a plant asset, the cost of the asset and its related accumulated depreciation are removed from the books. 2) Accumulated depreciation is credited for the amount of depreciation expense for the current period. 3) A nonmonetary exchange is based on the fair.
8 Views
View Answer
34) Cost minus residual value divided by useful life in years is the: A) straight-line method. B) units-of-production method. C) double-declining balance method. D) modified accelerated cost recovery method. 35) When compared to the other methods of depreciation, the double-declining-balance method of depreciation gives depreciation expense that is: A) less in the earlier periods. B) more in.
7 Views
View Answer
24) Double-declining balance depreciation: A) is an accelerated method of depreciation. B) ignores the residual value in computing depreciation, except during the last year. C) is based on book value. D) is all of the above. 25) Which of the following depreciation methods best applies to those assets that generate greater revenue earlier in their.
8 Views
View Answer
3) Calculate Company Y's total asset turnover based on the following information for the current year: Net income $100,000 Assets at the beginning of the year $800,000 Assets at the end of the year $830,000 Net sales $300,000 A) 10.3% B) 12.3% C) 32.8% D) 36.8% 4) The following information was taken from the records of the Acme Company for the current year: Net.
15 Views
View Answer
11) Blue Moon Company has the following data for the year: Beginning inventory   $80,000 Net purchases $115,000 Net sales revenue $200,000 Normal gross profit percentage 45% What is the estimated ending inventory? A) $65,000 B) $80,000 C) $85,000 D) $105,000 12) The following data are for Tina's Candy Store for January: Beginning inventory   $215,000 Net sales revenue $440,000 Net purchases   $605,000 Normal gross profit rate 40% What is the company's.
44 Views
View Answer
8.1   Learning Objective 8-1 1) Long-term investments are listed on the balance sheet after current assets and property, plant, and equipment. 2) Investments can never be classified as short-term investments. 3) Stocks and bonds projected to be held for longer than one year are long-term investments. 4) On the balance sheet, assets are listed.
27 Views
View Answer
5) The Allowance to Adjust Investments account is a Long-Term Asset account. 6) Unrealized gains and losses result from changes in the investments fair value. 7) The Allowance to Adjust Investment to Market account will always have a debit balance. 8) GAAP requires companies to adjust their available-for-sale-securities to market value as of.
11 Views
View Answer
43) On June 1, 2011, Conqueror Company purchased Standard Corp for $26 million cash. At the time of purchase, the market value of Standard's assets was $24,000,000 and Mollie had liabilities of $3,000,000. At the end of 2012, Conqueror estimated the goodwill on the Standard purchase to be worth only $3,500,000. Prepare.
10 Views
View Answer
21) When the investment is readily convertible to cash and the investor plans to convert the investment to cash within one year, the investment is shown on the balance sheet as: A) short-term. B) long-term. C) equity. D) either long-term or short-term. 22) The following is the proper order for assets on a balance sheet: A).
12 Views
View Answer
58) Best Model Company reported $61,000 in depreciation expense for the current year using the double-declining-balance method. The company estimates that it saved net cash of $12,000 in income taxes by using the double-declining-balance instead of the straight-line method. The company has a 30% tax rate. What would depreciation expense.
9 Views
View Answer
16) A recent fire destroyed the inventory of The Candle Store. The accountant is preparing an estimate of the loss for the insurance company and has gathered the following from the records of the company: Beginning inventory$48,000 Purchases71,000 Net sales110,000 Estimated gross profit25% Prepare a schedule to compute the amount of the inventory lost in.
41 Views
View Answer
75) Martin Motors purchased a machine that will help diagnose problems with engines. The machine cost $210,000 on January 10, 2010 and a residual value of $10,000 was anticipated, with a useful life of 5 years. These statistics are available: DDB Gross Profit 400,000 Operating expenses 180,000 Income before depreciation and taxes 220,000 Depreciation 84,000 Income before taxes 136,000 Taxes (35%) 47,600 Net Income 88,400 Martin.
5 Views
View Answer
7.6   Learning Objective 7-6 1) If an asset is impaired, the company is required to adjust the carrying value downward from its book value to its fair value. 2) Which of the following is a correct statement about asset impairment? A) An asset is impaired if the net book value exceeds the estimated.
17 Views
View Answer
20) Mindy's Boutique has a beginning balance in the equipment account of $137,000. During the year, they purchased $245,000 worth of equipment. At the end of the year, the balance in the equipment account was $315,000. The cost of the equipment that Mindy's Boutique sold was: A) $58,000. B) $67,000. C) $108,000. D) $178,000. 21).
9 Views
View Answer
41) Several intangible assets are listed in Column I. For each question, select the definition of the intangible in Column II which describes the intangible asset. Record your choice on the line preceding the question number. An answer may only be used one time. Column IColumn II ____ 1. Copyright A)  Federal government grants that.
8 Views
View Answer
70) A machine costing $40,000 was purchased on January 1, 2012. It has an estimated useful life of 5 years and a salvage value of $5,000. Required: 1. Calculate depreciation expense for 2012 and 2013 using (a) straight-line rate, and (b) double-declining balance method. 2. Determine the book value of the machine at.
7 Views
View Answer
7.2   Learning Objective 7-2 1) The distinction between a capital expenditure and an expense can be difficult to determine. 2) Many companies will have a policy of expensing all items above a certain dollar amount. 3) Costs that extend an asset's useful life should be capitalized. 4) An expenditure that increases an asset's capacity.
9 Views
View Answer
21) Amortization expense: A) is the title of the expense associated with natural resources. B) is recorded for intangible assets with a finite life. C) is recorded for assets with an indefinite life. D) cannot be credited directly to the asset account. 22) Which of the following intangible assets has an indefinite life? A) Patents B) Copyrights C).
12 Views
View Answer
31) Tanner Company acquired equipment #1, equipment #2, and equipment #3, for $600,000. Equipment #1 is appraised at $240,000, equipment # 2 is appraised at $310,000 and equipment #3 is appraised for $110,000.The cost of equipment #2 is: A) $220,218. B) $200,000. C) $281,818. D) $310,000. 32) Bixby Corporation purchased land and a building for.
10 Views
View Answer
53) On January 2, 2012, Hockey Skates, Inc., acquired equipment for $230,000. The estimated life of the equipment is 5 years. The estimated residual value is $30,000. What is the book value of the equipment on December 31, 2012, if Hockey Skates uses the double-declining-balance method of depreciation? A) $92,000 B) $138,000 C).
12 Views
View Answer
15) The Allowance to Adjust Investment to Market is a companion to Interest Receivable. 16) On purchase date, Available-for-sale investments in stock are recorded at: A) their cost. B) the lower-of-cost-or-market. C) their amortized cost. D) their realizable value. 17) On the balance sheet, Available-for-sale investments in stock are reported at: A) their cost. B) the lower-of-cost-or-market. C) their.
10 Views
View Answer
11) Some trademarks have a definite life set by a contract and should be amortized. 12) All of the following are classified as natural resources and are depleted EXCEPT for: A) land. B) timber. C) minerals. D) oil. 13) Natural resources: A) are not physically used up over time. B) have a contra account, accumulated amortization. C) are recorded.
10 Views
View Answer
11) Michelle Industries has the following information available for the current year: Total sales $3,000,000         Purchases $1,800,000 Beginning inventory $265,000 Ending inventory $115,000 Cost of goods sold 65% of sales Required: 1.Calculate the following: Inventory turnover Gross profit margin 2.If the industry average for inventory turnover is 5.29, and for gross profit margin is 28.2%, comment on how this company compares to the              .
43 Views
View Answer
49) On January 2, 2011, KJ Corporation acquired equipment for $260,000. The estimated life of the equipment is 5 years or 40,000 hours. The estimated residual value is $20,000. What is the balance in Accumulated Depreciation on December 31, 2011, if KJ Corporation uses the double-declining-balance method of depreciation? A) $62,400 B).
10 Views
View Answer
21) The cost of installing lights in the parking lot should be recorded as: A) land. B) land improvements. C) building. D) equipment. 22) Although located on the land, they are subject to decay and their cost is depreciated. This is the definition of: A) land improvements. B) plant and equipment. C) buildings. D) land. 23) The ________ method is.
10 Views
View Answer
16) Equipment purchased for $85,000 on January 1, 2010, was sold on July 1, 2013. The company uses the straight-line method of computing depreciation and recognizes $17,000 of depreciation expense annually. When recording the sale, the company should record a debit to Accumulated Depreciation for: A) $0. B) $51,000. C) $59,500. D) $68,000. 17) Equipment.
8 Views
View Answer
44) Under the modified accelerated cost recovery system, all of the following are true EXCEPT that: A) assets are grouped into classes. B) most real estate is depreciated using the straight-line method. C) for a given class, the depreciation is computed using a declining-balance method. D) MACRS can only be used for financial reporting.
8 Views
View Answer
25) The market value of an available-for-sale security has decreased from the last carrying value. The journal entry to record this decrease will include: A) a debit to the Allowance to Adjust Investment to Market. B) a credit to the Allowance to Adjust Investment to Market. C) a credit to the Unrealized Loss.
8 Views
View Answer
7.5   Learning Objective 7-5 1) Accumulated depletion reduces equity, as this account is a contra-revenue account. 2) Natural resources are reported in the Intangible Assets section of the income statement. 3) Natural resources are also called wasting assets. 4) Intangibles can have finite or infinite lives. 5) Intangible assets with finite lives that can be.
9 Views
View Answer
14) It is illegal to use one method of depreciation for financial purposes and another method for tax purposes. 15) Since depreciation is an estimate, depreciation must be computed for the entire year, regardless of when the asset was purchased. 16) Changes in accounting estimates are not allowed under the consistency principle. 17).
8 Views
View Answer
4) The units-of-production method is an accelerated depreciation method. 5) Book value equals the cost of the asset less the total accumulated depreciation. 6) The normal balance of the accumulated depreciation account is a debit. 7) The straight-line method must be used for computing depreciation for income tax purposes. 8) At the end of.
6 Views
View Answer
11) Company A replaced the tires and painted several of its vehicles during the year. These costs should be: A) debited to Equipment. B) depreciated over the life of the vehicles. C) credited to Accumulated Depreciation. D) debited to Repair Expense. 12) On June 1, Puff's Trucking Company paid $3,000 to overhaul the engine on.
7 Views
View Answer
6.5   Learning Objective 6-5 1) A company can use the cost-of-goods-sold model to determine how much inventory to purchase. 2) The gross profit method can be used to estimate ending inventory. 3) The gross profit method is often used for calculating inventory destroyed by a disaster, such as a fire. 4) The cost-of-goods-sold-model can.
46 Views
View Answer
11) An example of an intangible asset is: A) land. B) equipment. C) coal mine. D) goodwill. 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. D) goodwill. 13) The only plant asset that does not depreciate is: A) office supplies. B) furniture. C) land. D) patents. 14) An asset.
17 Views
View Answer
6.7   Learning Objective 6-A 1) In the periodic inventory system, the inventory account is debited for the purchases made during the year. 2) Under the periodic inventory system, a physical inventory is taken to determine the cost of the inventory on hand and the cost of the merchandise sold. 3) The journal entry.
7 Views
View Answer
31) Godert Pharmaceutical Company has many scientists working in their labs trying to develop an anti-aging drug. The cost of this research and development must be: A) expensed as incurred. B) set up as an intangible asset and amortized over 20 years. C) set up as an intangible and tested for impairment on.
10 Views
View Answer
6.6   Learning Objective 6-6 1) Overstating ending inventory in the current period will overstate the following year's net income. 2) An error in ending inventory creates errors for three accounting periods. 3) One way a company can deliberately overstate inventory is to overstate the inventory count. 4) If ending inventory for the period is.
41 Views
View Answer

Can't find what you're looking for ?

Ask our exprts a study questions, on us.
Get free Homework Help*