Test Bank Chapter 11 Depreciation, Impairments, and Depletion.
Exam (elaborations)
Test Bank Chapter 11 Depreciation, Impairments, and Depletion.
239 views 1 purchase
Course
Test Bank Chapter 11 Depreciation, Impairments, and Depletion.
Institution
University
CHAPTER 11
DEPRECIATION, IMPAIRMENTS, AND DEPLETION
IFRS questions are available at the end of this chapter.
TRUE-FALSE—Conceptual
Description
T 1. Nature of depreciation.
F 2. Nature of depreciation.
T 3. Depreciation, depletion, and amortization.
T 4. Definition of depreciation base.
F...
Test Bank Chapter 11 Depreciation, Impairments, and Depletion.
All documents for this subject (1)
Seller
Follow
solutions
Reviews received
Content preview
CHAPTER 11
DEPRECIATION, IMPAIRMENTS, AND DEPLETION
IFRS questions are available at the end of this chapter.
TRUE-FALSE—Conceptual
Answer No. Description
T 1. Nature of depreciation.
F 2. Nature of depreciation.
T 3. Depreciation, depletion, and amortization.
T 4. Definition of depreciation base.
F 5. Factors involved in depreciation process.
F 6. Definition of inadequacy.
T 7. Objection to straight-line method.
F 8. Units-of-production approach.
F 9. Accelerated depreciation method.
T 10. Declining-balance method.
T 11. Group or composite approach.
F 12. Use of the composite approach.
T 13. Accounting for changes in estimates.
F 14. Computation of impairment loss amount.
T 15. First step in determining an impairment.
T 16. Reporting impaired assets held for disposal.
F 17. Method used to compute depletion.
T 18. Costs included in depletion base.
F 19. Computing asset turnover ratio.
T 20 Profit margin on sales ratio.
MULTIPLE CHOICE—Conceptual
Answer No. Description
d 21. Knowledge of depreciation accounting.
b 22. Conceptual rationale for depreciation accounting.
c 23. Depreciation and retaining funds.
S
b 24. Definition of depreciation.
S
a 25. Service life vs. physical life.
P
a 26. Definition of depreciable cost.
d 27. Economic factors affecting useful service life.
d 28. Factors involved in computing depreciation.
d 29. Straight-line method assumption.
a 30. Activity method of depreciation.
a 31. Units-of-production method of depreciation.
d 32. Units-of-production method of depreciation.
d 33. Knowledge of double-declining balance method.
c 34. Components of sum-of-the-years'-digits method.
c 35. Graphic depiction of straight-line and sum-of-the-years'-digits methods.
b 36. Disadvantage of using straight-line method.
,11 - 2 Test Bank for Intermediate Accounting, Fourteenth Edition
MULTIPLE CHOICE—Conceptual (cont.)
Answer No. Description
b 37. Group method of depreciation.
d 38. Identification of composite life.
P
c 39. Group method of depreciation.
S
c 40. Composite or group depreciation.
b 41. Partial-year depreciation computation.
b 42. Depreciation for part year.
c 43. Change in estimated life of depreciable asset.
b 44. Reporting a change in estimate.
b 45. Recording an asset impairment.
d 46. Depreciation and cost depletion similarities.
d 47. Difference between depreciation and cost depletion.
d 48. Depreciation and liquidating dividends.
a 49. Classification of depletion expense.
d 50. Units-of-production depletion expense.
d 51. Reserve recognition accounting.
S
c 52. Items part of depletion cost.
S
b 53. Required disclosures for depreciation.
P
b 54. Definition of book value.
d 55. Disclosure of depreciation policy.
d 56. Asset turnover ratio.
d 57. Return on total assets ratio.
c *58. Objectives of MACRS method.
d *59. Factors to consider in MACRS tax depreciation.
c *60. Effect of accelerated depreciation on the income statement.
P
These questions also appear in the Problem-Solving Survival Guide.
S
These questions also appear in the Study Guide.
* This topic is dealt with in an Appendix to the chapter.
MULTIPLE CHOICE—Computational
Answer No. Description
c 61. Factors involved in depreciation.
c 62. Calculate depreciation using activity method.
b 63. Calculate double-declining balance depreciation.
c 64. Calculate double-declining balance depreciation.
b 65. Calculate depreciation using activity method.
c 66. Calculate depreciation using activity method.
b 67. Calculate depreciation using activity method.
c 68. Calculate depreciation using double-declining balance method.
b 69. Calculate depreciation using activity method.
c 70. Calculate depreciation using double-declining balance method.
b 71. Calculate depreciation using double-declining balance.
b 72. Calculate depreciation using double-declining balance.
b 73. Calculate depreciation using double-declining balance.
b 74. Calculate depreciation using double-declining balance.
c 75. Sum-of-the-years'-digits method.
, Depreciation, Impairments, and Depletion 11 - 3
MULTIPLE CHOICE—Computational (cont.)
Answer No. Description
b 76. Sum-of-the-years'-digits method.
a 77. Calculate depreciation using sum-of-the-years'-digits.
c 78. Calculate depreciation using sum-of-the-years'-digits.
c 79. Determine acquisition cost from sum-of-the-years'-digits.
b 80. Determine acquisition cost from sum-of-the-years'-digits.
c 81. Calculate gain on sale of machinery.
a 82. Determine depreciation expense from change in Accumulated Depreciation
account.
c 83. Determine depreciation expense from change in Accumulated Depreciation
account.
a 84. Determine composite rate of depreciation.
a 85. Determine composite life of a group of assets.
d 86. Depreciation and partial periods.
c 87. Change in estimated useful life.
d 88. Depreciation and partial periods.
c 89. Change in estimated useful life.
a 90. Entry under composite method.
b 91. Calculate depreciation expense after change in estimate.
b 92. Compute composite depreciation rate.
c 93. Compute composite life of assets.
a 94. Determine amount of impairment loss.
d 95. Recognizing loss on impairment.
a 96. Recognizing loss on impairment.
c 97. Recognizing loss on impairment.
b 98. Change in estimated life of equipment.
a 99. Determine depreciation expense after major overhaul.
b 100. Determine depreciation expense after major overhaul.
c 101. Record permanent impairment in value of fixed asset.
c 102. Calculate units-of-production depletion expense.
c 103. Calculate units-of-production depletion expense.
b 104. Calculate units-of-production depletion expense.
d 105. Calculate units-of-production depletion expense.
b 106. Capitalization of exploration costs and discovery values.
a 107. Calculate depletion per ton.
b 108. Entry to record depletion.
c 109. Calculate asset turnover ratio.
a 110. Calculate return on total assets.
d 111. Calculate asset turnover ratio.
c 112. Calculate return on total assets.
c 113. Calculate asset turnover ratio.
c 114. Calculate asset turnover ratio.
a *115. Calculate MACRS depreciation for the year.
d *116. Calculate MACRS depreciation using optional straight-line method.
, 11 - 4 Test Bank for Intermediate Accounting, Fourteenth Edition
MULTIPLE CHOICE—CPA Adapted
Answer No. Description
c 117. Calculate depreciation using 150% declining balance.
b 118. Double-declining balance method.
b 119. Determine accumulated depreciation balance using sum-of-the-years'-digits.
a 120. Calculate depreciation expense using sum-of-the-years'-digits.
d 121. Effect of salvage value on accumulated depreciation.
b 122. Effect of including salvage value in depreciation base.
b 123. Effect of decreasing charge methods on sale of asset.
b 124. Units-of-production depletion expense.
c 125. Calculate depletion expense for the year.
2. Identify the factors involved in the depreciation process.
3. Compare activity, straight-line, and decreasing charge methods of depreciation.
4. Explain special depreciation methods.
5. Explain the accounting issues related to asset impairment.
6. Explain the accounting procedures for depletion of natural resources.
7. Explain how to report and analyze property, plant, and equipment and natural resources.
*8. Describe income tax methods of depreciation.
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller solutions. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $12.49. You're not tied to anything after your purchase.
