ACCCOB2 Quiz 3 (Chapters 6-7) with Correct Answers
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Acccob2
Institution
Acccob2
ACCCOB2 Quiz 3 (Chapters 6-7) with
Correct Answers
Depreciation is the process of allocating the cost of a plant asset over its service life in
a) an equal and equitable manner.
b) an accelerated and accurate manner.
c) a systematic and rational manner.
d) a conservative market-based manner. ...
c) accrued property taxes assumed by the purchaser.
d) title fees. - Answer✔✔-b) annual property taxes.
In computing depreciation, salvage value is
a) the fair market value of a plant asset on the date of acquisition.
b) subtracted from the original cost to determine the plant asset's depreciable cost.
c) added to the net.purchase price
d) ignored in all the depreciation methods. - Answer✔✔-b) subtracted from the original cost to
determine the plant asset's depreciable cost.
The calculation of depreciation using the double-declining balance method
a) ignores residual value in determining the amount to which the depreciation rate is applied.
b) multiplies a constant percentage by the previous year's depreciation expense.
c) yields an increasing depreciation expense each period.
d) multiplies a declining percentage by a constant carrying amount. - Answer✔✔-a) ignores residual
value in determining the amount to which the depreciation rate is applied.
Expenditures that maintain the operating efficiency and expected productive life of a fixed asset are
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