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
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
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
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
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
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 EFT, 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 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 R71,46. You're not tied to anything after your purchase.