100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
logo-home
Previously searched by you
Previously searched by you
logo
Chapter 10 Fixed Assets and Intangible Assets R69,93   Add to cart
Quickly navigate to
Preview
  2.  
  3. Chapter_10_Fixed_Assets
  4.  
  5. Chapter_10_Fixed_Assets
  6.  
  7. Chapter_10_Fixed_Assets

Exam (elaborations)

Chapter 10 Fixed Assets and Intangible Assets
 2 views  0 purchase
  • Course
  • Chapter_10_Fixed_Assets
  • Institution
  • Chapter_10_Fixed_Assets

Chapter 10 Fixed Assets and Intangible Assets Accounting 26th Ed by Warren -Test Bank

Preview 4 out of 91  pages

Document information

  • January 8, 2024
  • 91
  • 2022/2023
  • Exam (elaborations)
  • Questions & answers

Subjects

  • accounting 26th ed by warren test bank
  • chapter 10 fixed assets and intangible assets
  • accounting 26th ed chapter 10 fixed assets

Written for

  • Chapter_10_Fixed_Assets
  • Chapter_10_Fixed_Assets
  • Chapter_10_Fixed_Assets
All documents for this subject (1)

Seller

avatar-seller
ExamsExpert

Reviews received

Content preview

CHAPTER 10: FIXED ASSETS AND INTANGIBLE ASSETS
1. Long-lived assets that are intangible in nature, used in the operations of the business and not held for sale in the
ordinary course of business are called fixed assets.
a. True
b. False

ANSWER: False
DIFFICULTY: Moderate
Bloom’s: Remembering
LEARNING OBJECTIVES: ACCT.WARD.16.10-01 - 10-01
ACCREDITING STANDARDS: ACCT.ACBSP.APC.13 - Long-term Assets Reporting
ACCT.AICPA.FN.03 - Measurement
BUSPROG: Analytic

2. The acquisition costs of property, plant, and equipment should include all normal, reasonable and necessary costs
to get the asset in place and ready for use.
a. True
b. False

ANSWER: True
DIFFICULTY: Easy
Bloom’s: Remembering
LEARNING OBJECTIVES: ACCT.WARD.16.10-01 - 10-01
ACCREDITING STANDARDS: ACCT.ACBSP.APC.13 - Long-term Assets Reporting
ACCT.AICPA.FN.03 - Measurement
BUSPROG: Analytic

3. When land is purchased to construct a new building, the cost of removing any structures on the land should
be charged to the building account.
a. True
b. False

ANSWER: False
DIFFICULTY: Moderate
Bloom’s: Remembering
LEARNING OBJECTIVES: ACCT.WARD.16.10-01 - 10-01
ACCREDITING STANDARDS: ACCT.ACBSP.APC.13 - Long-term Assets Reporting
ACCT.AICPA.FN.03 - Measurement
BUSPROG: Analytic




© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

,Chapter 10: Fixed Assets and Intangible Assets



4. Land acquired as a speculation is reported under Investments on the balance sheet.
a. True
b. False

ANSWER: True
DIFFICULTY: Easy
Bloom’s: Remembering
LEARNING OBJECTIVES: ACCT.WARD.16.10-01 - 10-01
ACCREDITING STANDARDS: ACCT.ACBSP.APC.13 - Long-term Assets Reporting
ACCT.AICPA.FN.03 - Measurement
BUSPROG: Analytic

5. Standby equipment held for use in the event of a breakdown of regular equipment is reported as property, plant,
and equipment on the balance sheet.
a. True
b. False

ANSWER: True
DIFFICULTY: Moderate
Bloom’s: Remembering
LEARNING OBJECTIVES: ACCT.WARD.16.10-01 - 10-01
ACCREDITING STANDARDS: ACCT.ACBSP.APC.13 - Long-term Assets Reporting
ACCT.AICPA.FN.03 - Measurement
BUSPROG: Analytic

6. The cost of repairing damage to a machine during installation is debited to a fixed asset account.
a. True
b. False

ANSWER: False
DIFFICULTY: Easy
Bloom’s: Remembering
LEARNING OBJECTIVES: ACCT.WARD.16.10-01 - 10-01
ACCREDITING STANDARDS: ACCT.ACBSP.APC.13 - Long-term Assets Reporting
ACCT.AICPA.FN.03 - Measurement
BUSPROG: Analytic




© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

,Chapter 10: Fixed Assets and Intangible Assets



7. During construction of a building, the cost of interest on a construction loan should be charged to an
expense account.
a. True
b. False

ANSWER: False
DIFFICULTY: Moderate
Bloom’s: Remembering
LEARNING OBJECTIVES: ACCT.WARD.16.10-01 - 10-01
ACCREDITING STANDARDS: ACCT.ACBSP.APC.13 - Long-term Assets Reporting
ACCT.AICPA.FN.03 - Measurement
BUSPROG: Analytic

8. The cost of computer equipment does not include the consultant's fee to supervise installation of the equipment.
a. True
b. False

ANSWER: False
DIFFICULTY: Easy
Bloom’s: Remembering
LEARNING OBJECTIVES: ACCT.WARD.16.10-01 - 10-01
ACCREDITING STANDARDS: ACCT.ACBSP.APC.13 - Long-term Assets Reporting
ACCT.AICPA.FN.03 - Measurement
BUSPROG: Analytic

9. Capital expenditures are costs of acquiring, constructing, adding, or replacing property, plant and equipment.
a. True
b. False

ANSWER: True
DIFFICULTY: Easy
Bloom’s: Remembering
LEARNING OBJECTIVES: ACCT.WARD.16.10-01 - 10-01
ACCREDITING STANDARDS: ACCT.ACBSP.APC.13 - Long-term Assets Reporting
ACCT.AICPA.FN.03 - Measurement
BUSPROG: Analytic




© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

, Chapter 10: Fixed Assets and Intangible Assets



10. The cost of new equipment is called a revenue expenditure because it will help generate revenues in the future.
a. True
b. False

ANSWER: False
DIFFICULTY: Easy
Bloom’s: Remembering
LEARNING OBJECTIVES: ACCT.WARD.16.10-01 - 10-01
ACCREDITING STANDARDS: ACCT.ACBSP.APC.13 - Long-term Assets Reporting
ACCT.AICPA.FN.03 - Measurement
BUSPROG: Analytic

11. Expenditures that increase operating efficiency or capacity for the remaining useful life of a fixed asset are
called capital expenditures.
a. True
b. False

ANSWER: True
DIFFICULTY: Easy
Bloom’s: Remembering
LEARNING OBJECTIVES: ACCT.WARD.16.10-01 - 10-01
ACCREDITING STANDARDS: ACCT.ACBSP.APC.13 - Long-term Assets Reporting
ACCT.AICPA.FN.03 - Measurement
BUSPROG: Analytic

12. The cost of replacing an engine in a truck is an example of ordinary maintenance.
a. True
b. False

ANSWER: False
DIFFICULTY: Easy
Bloom’s: Remembering
LEARNING OBJECTIVES: ACCT.WARD.16.10-01 - 10-01
ACCREDITING STANDARDS: ACCT.ACBSP.APC.13 - Long-term Assets Reporting
ACCT.AICPA.FN.03 - Measurement
BUSPROG: Analytic

13. An intangible asset is one that has a physical existence.
a. True
b. False

ANSWER: False
DIFFICULTY: Moderate
Bloom’s: Remembering
LEARNING OBJECTIVES: ACCT.WARD.16.10-01 - 10-01
ACCREDITING STANDARDS: ACCT.ACBSP.APC.13 - Long-term Assets Reporting
© 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

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

Quick and easy check-out

You can quickly pay through EFT, credit card or Stuvia-credit for the summaries. There is no membership needed.

Focus on what matters

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 this summary from?

Stuvia is a marketplace, so you are not buying this document from us, but from seller ExamsExpert. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy this summary for R69,93. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

71498 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy summaries for 14 years now

Start selling
R69,93
  • (0)
  Buy now