下载文档原格式
Financial Accounting 第七版课程设计一、课程背景金融会计是财会专业的核心课程。
它主要涵盖了公司财务报表、现金流量表、利润表、资产负债表等方面的内容。
本课程旨在培养学生对财务报表的理解和分析能力，使其能够了解公司财务状况和经营绩效。
二、课程目标本课程旨在使学生：1.理解财务报表的总体结构和信息；2.掌握财务报表制作的基本原理和方法；3.熟悉会计核算的基本概念和原则；4.掌握资产、负债、权益、成本、收入和费用的概念和分类；5.能够分析公司的财务状况和经营绩效；6.能够编制财务报表和分析公司的财务状况和经营绩效。
三、课程内容第一章：绪论本章主要介绍了财务会计的背景和概念，包括会计的基本概念、会计的发展历程、会计的目的和职能、财务会计与管理会计的区别等内容。
第二章：会计基础知识本章介绍了会计核算的基本概念和原则，包括资产、负债、权益、成本、收入和费用的概念和分类，以及会计凭证和账簿的基本知识。
第三章：会计核算过程本章主要介绍了会计核算的流程和步骤，包括会计分录的编制、账户的设立和科目的处理等。
第四章：财务报表的基本结构和内容本章主要介绍了公司财务报表的基本结构和内容，包括资产负债表、利润表、现金流量表等方面的内容。
第五章：资产负债表的编制本章主要介绍了资产负债表的编制过程和方法，包括资产负债表的构成、算式和内容等。
第六章：利润表的编制本章主要介绍了利润表的编制过程和方法，包括利润表的构成、算式和内容等。
第七章：现金流量表的编制本章主要介绍了现金流量表的编制过程和方法，包括现金流量表的构成、算式和内容等。
第八章：会计政策、误差和变更的处理本章主要介绍了会计政策、误差和变更的处理方法，包括会计政策的选择、经营损益的调整、会计错误的更正等。
第九章：公司财务分析本章主要介绍了公司财务分析的方法和应用，包括财务比率分析、财务报表分析、财务预测分析等。
四、教学方法本课程主要采用理论讲授与实践操作相结合的教学方法，包括：1.理论讲授：由教师介绍理论知识，讲解财务报表的制作和分析方法；2.实践操作：由教师引导学生应用理论知识，进行案例分析、编制财务报表等实践操作。
会计英语七1791 gain 利得,收益1792 gain and loss account 损益账户1793 garnishee 第三债务人1794 garnishment 扣押,扣发1795 gearing 财务传动作用1796 gearing ratio 财务传动比率1797 general accountant 总会计师,总会计1798 General Accounting Office 审计总署1799 General Agreement on Tariffs and Trade 关税与贸易总协定1800 general and administrative expense 一般管理费用1801 general auditor 总审计师,总审计1802 general cash 普通现金1803 general cashier 出纳主任,总出纳1804 general creditor 普通债权人1805 general crossed check 普通划线支票1806 general fund 普通基金1807 general journal 普通日记账1808 general ledger 总分类账1809 generally accepted accounting principles 公认会计原则1810 generally accepted auditing standards 公认审计准则1811 g eneral meeting of stockholders 股东大会1812 general mortgage 普通抵押1813 general mortgage bond 普通抵押债券1814 general partner 普通合伙人1815 general price index 一般物价指数1816 general price level accounting 一般物价水平会计1817 general purpose financial statement 通用财务报表,通用会计报表1818 general standard( of audit) 审计一般准则1819 gift 赠与,赠与物1820 gift tax 赠与税1821 gilt-edged security 金边证券,优质证券1822 glamour stock 热门股票,时髦股票1823 global accounting 全球会计1824 globalization 全球化1825 goal congruence 目标一致性1826 goal programming 目标规划1827 goal seeking 目标寻求,目标搜索1828 going concern 连续经营的企业1829 going-concern postulate 连续经营假设1830 going-concern value 连续经营价值1831 going private 私售股份,股份私人持有1832 going public 公开招股,股票公开上市1833 gold arbitrage 黄金套利1834 gold bullion 金砖,金条1835 gold card 金卡1836 gold clause 黄金条款,黄金结算条款1837 golden parachute 优厚退职金1838 gold futures 黄金期货1839 goods and services 商品和劳务1840 goods in process 在产品1841 goods-in-process inventory 在产品存货1842 goodwill 商誉1843 government accounting 政府会计1844 Governmental Accounting Standards Board 政府会计准则委员会1845 government audit 政府审计1846 government auditor 政府审计师1847 government bond 政府公债1848 government corporation 国营公司1849 government subsidy 政府补助金,政府补贴1850 grace period 宽限期1851 grant 赠款,补助金1852 graphical method 图表法,图解法1853 graphic display 图表显示1854 graphic software 图表软件1855 greenback 美钞1856 greenmail payments 股份回收付款1857 gross 总额1858 gross book value 账面总值1859 gross income ①毛收益②营业收入总额1860 gross margin 毛利,毛利率1861 gross national product 国民生产总值1862 gross price method 总价法1863 gross profit 毛利1864 gross-profit method 毛利法1865 gross profit ratio 毛利率1866 gross sales 销售收入总额1867 gross wage 工资总额1868 gross working capital 流动资产总额1869 gross yield 毛收益率1870 group accounts 合并财务报表,合并会计报表1871 group depreciation 分类折旧1872 group financial statement 分组合并会计报表1873 growth rate 增长率,成长率1874 growth stock 新兴公司股票1875 guaranteed bill 担保票据1876 guaranteed bond 担保债券1877 guaranteed letter of credit 担保信用证1878 guarantor 保证人,担保人1879 guaranty funds 保证金1880 half finished goods 半成品1881 half-stock 半额股票1882 half-year closing 半年结算1883 half-year convention 半年常规1884 Hang Seng Index 恒生指数1885 hard copy 硬拷贝,印刷记录1886 hard currency 硬通货1887 hard loan 硬通货贷款1888 hardware 硬件1889 harmonization of accounting 会计的协调1890 heading 表首,表头1891 head office 总部,总店1892 head office control account 总店控制账户1893 head office current account 总店往来账户1894 hedge 套期交易,对冲交易1895 hedge buying 买期保值,套买保值1896 hedge selling 套卖保值,卖期保值1897 hidden assets 隐蔽资产,账外资产1898 hidden liability 隐蔽负债,账外负债1899 hidden reserve 隐蔽准备金1900 high-grade securities 高级证券,优质证券1901 high-level language 高级语言1902 high-leveraging 高度财务杠杆作用1903 highlight 重点财务数据1904 high-low method 高低点法1905 high-yielders 高收益债券1906 hire purchase 租购,分期付款购货1907 hire purchase accounting 租购会计1908 historical cost 历史成本1909 historical cost accounting 历史成本会计1910 historical cost depreciation 历史成本折旧1911 h istorical cost principle 历史成本计价原则1912 historical summary 历史数据汇总表1913 holdback 暂时扣发1914 holder ①持票人②股票持有人,债券持有人1915 holder in due course 正当持票人1916 holders of record 在册股东1917 holding assets 持有资产,置存资产1918 holding company 控股公司1919 holding cost 储存成本,置存成本1920 holding gain or loss 资产置存损益1921 holding period 置存期1922 home country 原籍国,宗主国1923 home currency 本国货币1924 home currency transaction 本国货币经济业务,本国货币业务1925 home office 总部,总店1926 honor 承付,承兑1927 honorarium 酬金1928 horizontal analysis 横向分析1929 horizontal audit 横向审计1930 horizontal combination 横向合并1931 host country 所在国,东道国1932 hot money 游资1933 hourly wage rate 小时工资率1934 hour rate variance 小时工资率差异1935 human assets 人力资产1936 human resource accounting 人力资源会计1937 hurdle rate 最低收益率,最低期望收益率1938 hypothecated account 抵押账户1939 hypothecation 抵押。
Chapter 10: Plant Assets and Intangibles1)The cost of land includes the cost of removing unwanted buildings.Answer:TRUEDiff: 1Page Ref: 507Objective: 10-1EOC Ref: S10-12)The cost of fencing around a building is included in the cost of the building.Answer:FALSEDiff: 1Page Ref: 507Objective: 10-1EOC Ref: S10-13)Treating a capital expenditure as an expense causes an understatement of net income.Answer:TRUEDiff: 1Page Ref: 509, 510Objective: 10-1EOC Ref: S10-14)Tangible assets are assets with no physical form that have value because of the special rightsthey carry.Answer:FALSEDiff: 1Page Ref: 506, 525Objective: 10-1EOC Ref: S10-15)The three major depreciation methods are straight-line, declining-balance, and specificidentification.Answer:FALSEDiff: 1Page Ref: 511Objective: 10-2EOC Ref: S10-46)Estimated residual value is the expected cash value of an asset at the end of its useful life.Answer:TRUEDiff: 1Page Ref: 511Objective: 10-2EOC Ref: S10-47)The straight-line method of depreciation assigns a fixed amount of depreciation to each unit ofoutput produced by an asset.Answer:FALSEDiff: 1Page Ref: 512Objective: 10-2EOC Ref: S10-48)Accelerated depreciation differs from straight line depreciation in that depreciation expense isgreater in the first year and less in the later years.Answer:TRUEDiff: 1Page Ref: 513Objective: 10-2EOC Ref: S10-49)The units-of-production method of depreciation always writes off more of the assetʹs cost nearthe start of its useful life than the declining-balance method.Answer:FALSEDiff: 1Page Ref: 513Objective: 10-3EOC Ref: S10-610)The double-declining balance method of depreciation computes annual depreciation bymultiplying the assetʹs decreasing book value by a constant percent that is two times thestraight-line rate.Answer:TRUEDiff: 1Page Ref: 513Objective: 10-3EOC Ref: S10-611)The MACRS depreciation method, required for purposes of determining taxable income,computes depreciation by using 150% declining balance depreciation (rather thandouble-declining balance) for most assets with a useful life of less than 20 years.Answer:FALSEDiff: 2Page Ref: 519Objective: 10-3EOC Ref: S10-612)For tax purposes, accelerated depreciation is generally preferable to straight-line becauseaccelerated depreciation reduces taxable income and taxes due.Answer:TRUEDiff: 1Page Ref: 519Objective: 10-3EOC Ref: S10-613)A loss on the sale of a plant asset is recorded when the sales price exceeds the book value.Answer:FALSEDiff: 1Page Ref: 522Objective: 10-4EOC Ref: S10-914)If assets are junked before being fully depreciated, there is a loss equal to the book value of theasset.Answer:TRUEDiff: 1Page Ref: 521Objective: 10-4EOC Ref: S10-915)A loss occurs on the exchange of a plant asset if the market value of the new asset received isgreater than the total amount given up in the exchange.Answer:FALSEDiff: 1Page Ref: 523, 524Objective: 10-4EOC Ref: S10-1016)A gain on the exchange of a plant asset is not recorded, but results in a smaller basis in thenew asset received.Answer:TRUEDiff: 1Page Ref: 523, 524Objective: 10-4EOC Ref: S10-1017)Depletion expense is the portion of a natural resourceʹs cost used up in a particular period.Answer:TRUEDiff: 1Page Ref: 524, 525Objective: 10-5EOC Ref: S10-1118)Accumulated depletion is a contra-liability account.Answer:FALSEDiff: 1Page Ref: 524, 525Objective: 10-5EOC Ref: S10-1119)Goodwill is not amortized, but evaluated each year for a decline in value.Answer:TRUEDiff: 2Page Ref: 526, 527Objective: 10-6EOC Ref: S10-1320)A patent is an exclusive right to reproduce and sell a book, musical composition, film, otherwork of art, or computer program, and must be amortized over the useful life of the patent.Answer:FALSEDiff: 2Page Ref: 526Objective: 10-6EOC Ref: S10-1321)Which of the following are included in the cost of land?A)The cost of clearing the landB)The cost of fencingC)The cost of pavingD)The cost of outdoor lightingAnswer:ADiff: 1Page Ref: 507Objective: 10-1EOC Ref: S10-122)Which of the following is included in the cost of a plant asset?A)The purchase price of the plant assetB)The taxes paidC)Amounts paid to ready the asset for its intended useD)All of the aboveAnswer:DDiff: 1Page Ref: 506Objective: 10-1EOC Ref: S10-123)Which of the following assets groups includes fencing?A)BuildingsB)LandC)Land improvementsD)Machinery and equipmentAnswer:CDiff: 1Page Ref: 507Objective: 10-1EOC Ref: S10-124)Which of the following assets groups includes the cost of clearing land and removingunwanted buildings?A)BuildingsB)LandC)Land improvementsD)Machinery and equipmentAnswer:BDiff: 1Page Ref: 507Objective: 10-1EOC Ref: S10-125)Which of the following is NOT considered a plant asset?A)LandB)BuildingC)CopyrightD)EquipmentAnswer:CDiff: 1Page Ref: 507, 508, 526Objective: 10-1EOC Ref: S10-126)Which of the following is a characteristic of a plant asset?A)The asset is used in the production of income for the business.B)The asset is available for resale to customers in the ordinary course of business.C)The asset lacks physical form.D)Both A and B are characteristics of a plant asset.Answer:ADiff: 1Page Ref: 506Objective: 10-1EOC Ref: S10-127)Hastings Company has purchased a group of assets for $350,000. The assets and their marketvalues are listed as follows:Land $125,000Equipment 75,000Building 200,000Which of the following amounts would be debited to the Land account?A)$ 65,625B)109,375C)125,000D)175,000Answer:BDiff: 1Page Ref: 507Objective: 10-1EOC Ref: S10-228)Which of the following would be capitalized and depreciated rather than expensed?A)Repair of engineB)Replacement of tiresC)Paint jobD)Modification for new useAnswer:DDiff: 1Page Ref: 509, 510Objective: 10-1EOC Ref: S10-329)Which of the following would be expensed rather than capitalized?A)Major engine overhaulB)Modification for new useC)Oil change and lubricationD)Addition to storage capacityAnswer:CDiff: 1Page Ref: 509, 510Objective: 10-1EOC Ref: S10-330)A companyʹs accountant capitalizes a payment that should be recorded as an expense. Whichof the following is TRUE?A)Assets are overstated.B)Liabilities are overstated.C)Revenue is overstated.D)Expenses are overstated.Answer:ADiff: 1Page Ref: 509, 510Objective: 10-1EOC Ref: S10-331)A companyʹs accountant expenses a payment that should be capitalized. Which of thefollowing is TRUE?A)Assets are overstated.B)Liabilities are overstated.C)Revenue is overstated.D)Expenses are overstated.Answer:DDiff: 1Page Ref: 509, 510Objective: 10-1EOC Ref: S10-332)Which of the following expenditures would be debited to an expense account?A)The cost to overhaul the company carʹs engineB)The cost to replace the transmission of the company careC)The cost to change the company carʹs oilD)All of the aboveAnswer:CDiff: 1Page Ref: 509, 510Objective: 10-1EOC Ref: S10-333)Which of the following are expenditures that are periodic and routine?A)Capital expendituresB)Ordinary repairsC)Extraordinary repairsD)Asset expendituresAnswer:BDiff: 1Page Ref: 509, 510Objective: 10-1EOC Ref: S10-334)Roberts Construction Company paid $40,000 for equipment with a market value of $45,000. Atwhich of the following amounts should the equipment be recorded?A)$40,000B)$42,500C)$45,000D)None of the aboveAnswer:ADiff: 1Page Ref: 508Objective: 10-1EOC Ref: S10-235)A company purchased a used machine for $80,000. The machine required installation costs of$8,000 and insurance while in transit of $500. At which of the following amounts would the equipment be recorded?A)$80,000B)$80,500C)$88,000D)$88,500Answer:DDiff: 1Page Ref: 508Objective: 10-1EOC Ref: S10-236)Which of the following items should be depreciated?A)LandB)Tangible property, plant, and equipment other than landC)Intangible propertyD)Natural resourcesAnswer:BDiff: 1Page Ref: 506-508Objective: 10-2EOC Ref: S10-437)Which of the following items should NOT be depreciated because it doesnʹt wear out?A)LandB)Tangible property, plant, and equipment other than landC)Intangible propertyD)Natural resourcesAnswer:ADiff: 1Page Ref: 507Objective: 10-2EOC Ref: S10-438)Which of the following accounting principles requires depreciation?A)Entity conceptB)Reliability conceptC)The revenue conceptD)The matching conceptAnswer:DDiff: 1Page Ref: 510Objective: 10-2EOC Ref: S10-439)Which of the following items is a factor to consider when computing depreciation expense?A)The cost of the assetB)The useful life of the assetC)The residual value of the assetD)All of the aboveAnswer:DDiff: 1Page Ref: 511Objective: 10-2EOC Ref: S10-440)Which of the following factors are estimates?A)The cost of the assetB)The useful life of the assetC)The residual value of the assetD)Both B and CAnswer:DDiff: 1Page Ref: 511Objective: 10-2EOC Ref: S10-441)Which of the following depreciation methods allocates an equal amount of depreciation toeach year?A)Straight-lineB)Units-of-productionC)Declining-balanceD)All of the aboveAnswer:ADiff: 1Page Ref: 512Objective: 10-2EOC Ref: S10-442)Which of the following depreciation methods allocates a fixed amount of depreciation toeach±miles driven, copies made, or some other number of components?A)Straight-lineB)Units-of-productionC)Declining-balanceD)All of the aboveAnswer:BDiff: 1Page Ref: 513Objective: 10-2EOC Ref: S10-443)Which of the following depreciation methods writes off more depreciation near the start of anassetʹs life than in later years?A)Straight-lineB)Units-of-productionC)Declining-balanceD)All of the aboveAnswer:CDiff: 1Page Ref: 513, 514Objective: 10-2EOC Ref: S10-444)Which of the following properly describes accumulated depreciation?A)Accumulated depreciation is a contra-asset account.B)Accumulated depreciation is a contra-liability account.C)Accumulated depreciation is an expense account.D)Accumulated depreciation is a contra-equity account.Answer:ADiff: 1Page Ref: 512Objective: 10-2EOC Ref: S10-445)Which of the following is the purpose of accumulated depreciation?A)Accumulated depreciation is an expense.B)Accumulated depreciationʹs purpose is to provide details about the cost expiration ofplant assets.C)Accumulated depreciationʹs purpose is to provide details about the cost expiration ofnatural assets.D)Accumulated depreciationʹs purpose is to provide details about the cost expiration ofintangible assets.Answer:BDiff: 1Page Ref: 512Objective: 10-2EOC Ref: S10-446)Which of the following depreciation methods does NOT use a residual method in the firstyear?A)Straight-lineB)Units-of-productionC)Declining-balanceD)All of the aboveAnswer:CDiff: 1Page Ref: 513, 514Objective: 10-2EOC Ref: S10-447)Which of the following depreciation methods is used by MOST companies for their financialstatements?A)Straight-lineB)Units-of-productionC)Declining-balanceD)All of the above methods are used about equallyAnswer:ADiff: 1Page Ref: 516Objective: 10-2EOC Ref: S10-448)Which of the following is the expected cash value of an asset at the end of its useful life?A)Book valueB)Carrying valueC)Market valueD)Residual valueAnswer:DDiff: 1Page Ref: 511Objective: 10-2EOC Ref: S10-4Table 10.1On January 1, 2011, Zane Manufacturing Company purchased a machine for $40,000. The company expects to use the machine a total of 24,000 hours over the next 6 years. The estimated sales price of the machine at the end of 6 years is $4,000. The company used the machine 8,000 hours in 2011 and 12,000 in 2012.49)Refer to Table 10.1. What is depreciation expense for 2011 if the company usesdouble-declining balance depreciation?A)$6,000B)$6,667C)$12,000D)$13,333Answer:DDiff: 2Page Ref: 513, 514Objective: 10-2EOC Ref: S10-450)Refer to Table 10.1. What is depreciation expense for 2012 if the company usesdouble-declining balance depreciation?A)$6,000B)$8,889C)$10,000D)$13,333Answer:BDiff: 2Page Ref: 513, 514Objective: 10-2EOC Ref: S10-451)Refer to Table 10.1. What is the book value of the machine at the end of 2012 if the companyuses double-declining balance depreciation?A)$13,333B)$17,778C)$20,000D)$28,000Answer:BDiff: 2Page Ref: 513, 514Objective: 10-2EOC Ref: S10-452)Refer to Table 10.1. What is depreciation expense for 2011 if the company uses straight-linedepreciation?A)$6,000B)$6,667C)$12,000D)$13,333Answer:ADiff: 1Page Ref: 512, 513Objective: 10-2EOC Ref: S10-453)Refer to Table 10.1. What is depreciation expense for 2012 if the company uses straight-linedepreciation?A)$6,000B)$9,000C)$10,000D)$13,333Answer:ADiff: 2Page Ref: 512, 513Objective: 10-2EOC Ref: S10-454)Refer to Table 10.1. What is the book value of the machine at the end of 2012 if the companyuses straight-line depreciation?A)$10,000B)$17,778C)$20,000D)$28,000Answer:DDiff: 1Page Ref: 512, 513Objective: 10-2EOC Ref: S10-455)Refer to Table 10.1. What is depreciation expense for 2011 if the company usesunits-of-production depreciation?A)$6,000B)$6,667C)$12,000D)$13,333Answer:CDiff: 2Page Ref: 513Objective: 10-2EOC Ref: S10-456)Refer to Table 10.1. What is depreciation expense for 2012 if the company usesunits-of-production depreciation?A)$6,000B)$9,000C)$10,000D)$18,000Answer:DDiff: 2Page Ref: 513Objective: 10-2EOC Ref: S10-457)Refer to Table 10.1. What is the book value of the machine at the end of 2012 if the companyuses units-of-production depreciation?A)$10,000B)$17,778C)$20,000D)$28,000Answer:ADiff: 3Page Ref: 513Objective: 10-2EOC Ref: S10-458)Which of the following is TRUE when the estimate of an assetʹs useful life is increased?A)Prior yearsʹ financial statements must be restated.B)Annual depreciation expense is decreased for the remaining years of the assetʹs life.C)The new estimate is ignored until the last year of the assetʹs life.D)Annual depreciation expense is increased for the remaining years of the assetʹs life.Answer:BDiff: 3Page Ref: 520, 521Objective: 10-2EOC Ref: S10-859)Lexis Company purchased equipment on January 1, 2005 for $35,500. The estimated useful lifeof the equipment was 7 years and the estimated residual value was $4,000. After using the straight-line method of depreciation for 3 years, the estimated useful life was revised to 9 years on January 1, 2008. How much is depreciation expense for 2008.A)$2,000B)$2,444C)$3,000D)$3,667Answer:CDiff: 3Page Ref: 520, 521Objective: 10-2EOC Ref: S10-860)Which of the following depreciation methods is used by MOST companies for their taxreturns?A)Straight-lineB)Units-of-productionC)Declining-balanceD)All of the above methods are used about equallyAnswer:CDiff: 1Page Ref: 519Objective: 10-3EOC Ref: S10-661)A company purchased a computer on July 1, 2009. The computer has an estimated useful lifeof 5 years and will have no salvage value. It is estimated that the computer can be used for 5,000 hours. The computer was used for 450 hours during 2009. If the goal is to reduce taxable income to the lowest amount, which method should be elected and how much depreciation can be deducted in 2009?A)Straight-line, $1,000B)Double declining-balance, $2,000C)Units-of-production, $900D)None of the aboveAnswer:BDiff: 1Page Ref: 519Objective: 10-3EOC Ref: S10-662)A company purchased equipment for $100,000 in 2008. The machine will be used for 10,000hours and will have a residual value of $20,000. The equipment was used for 2,400 hours in 2008. How much depreciation will be deducted if the company elects the units-of-production method for tax return purposes?A)$10,000B)$19,200C)$20,000D)$24,000Answer:BDiff: 1Page Ref: 519Objective: 10-3EOC Ref: S10-663)When is a gain on disposal of an asset recorded?A)A gain is recorded when the assetʹs residual value is less than the cash received.B)A gain is recorded when the asset is sold for a price greater than the assetʹs book value.C)A gain is recorded when accumulated depreciation is less than the cash received.D)A gain is recorded when the asset is sold for a price less than the assetʹs book value.Answer:BDiff: 1Page Ref: 522, 523Objective: 10-4EOC Ref: S10-964)When is a loss on disposal of an asset recorded?A)A loss is recorded when the assetʹs residual value is less than the cash received.B)A loss is recorded when the asset is sold for a price greater than the assetʹs book value.C)A loss is recorded when accumulated depreciation is less than the cash received.D)A loss is recorded when the asset is sold for a price less than the assetʹs book value.Answer:DDiff: 1Page Ref: 522, 523Objective: 10-4EOC Ref: S10-9residual value was $2,000. How much depreciation is deducted in the fourth year of use if the straight line method of depreciation was used?A)NoneB)$667C)$1,000D)$2,000Answer:ADiff: 2Page Ref: 512, 513Objective: 10-4EOC Ref: S10-966)An asset was purchased for $12,000. The assetʹs estimated useful life was 3 years and itsresidual value was $2,000. How much gain or loss is reported if the asset is sold for $3,000 at the beginning of the fourth year?A)No gain or lossB)$1,000 lossC)$1,000 gainD)$2,000 lossAnswer:CDiff: 2Page Ref: 522, 523Objective: 10-4EOC Ref: S10-967)An asset was purchased for $12,000. The assetʹs estimated useful life was 3 years and itsresidual value was $2,000. How much gain or loss is reported if the asset is sold for $3,000 at the end of the fourth year?A)No gain or lossB)$1,000 lossC)$1,000 gainD)$2,000 lossAnswer:CDiff: 2Page Ref: 522, 523Objective: 10-4EOC Ref: S10-9residual value was $2,000. How much gain or loss is reported if the asset is sold for $1,000 at the beginning for the fourth year?A)No gain or lossB)$1,000 lossC)$1,000 gainD)$2,000 lossAnswer:BDiff: 2Page Ref: 522, 523Objective: 10-4EOC Ref: S10-969)An asset was purchased for $12,000. The assetʹs estimated useful life was 3 years and itsresidual value was $2,000. How much gain or loss is reported if the asset is sold for $5,333 at the beginning for the third year if the straight line method of depreciation was used?A)No gain or lossB)$1,000 lossC)$1,000 gainD)$2,000 lossAnswer:ADiff: 2Page Ref: 522, 523Objective: 10-4EOC Ref: S10-970)Which of the following items is included in the journal entry if a company sells equipment at aprice equal to its book value?A)A debit to equipment for its book valueB)A credit to accumulated depreciationC)A debit to loss on sale of equipmentD)A credit to equipment for its original costAnswer:DDiff: 2Page Ref: 522, 523Objective: 10-4EOC Ref: S10-971)Which of the following items is included in the journal entry if a company sells equipment at aprice greater than its book value?A)A debit to equipment for its book valueB)A credit to gain on sale of equipmentC)A debit to loss on sale of equipmentD)A credit to accumulated depreciationAnswer:BDiff: 2Page Ref: 522, 523Objective: 10-4EOC Ref: S10-972)Which of the following items is included in the journal entry if a company sells equipment at aprice less than its book value?A)A debit to equipment for its book valueB)A credit to accumulated depreciationC)A debit to loss on sale of equipmentD)A credit to gain on sale of equipmentAnswer:CDiff: 2Page Ref: 522, 523Objective: 10-4EOC Ref: S10-973)Kelly Petroleum Products owns furniture that was purchased for $19,600. Accumulateddepreciation is $17,300. The furniture was sold for $3,800. Which of the following is the correct entry to record the transaction?A)Accumulated depreciation 17,300Cash 3,800Gain on sale of furniture 1,500Furniture 19,600B)Accumulated depreciation 17,300Cash 3,800Furniture 31,100C)Furniture 19,600Cash 2,700Gain on sale of furniture 5,000Accumulated depreciation 17,300D)Furniture 19,600Gain on sale of furniture 3,800Cash 2,700Accumulated depreciation 17,300Answer:ADiff: 2Page Ref: 522, 523Objective: 10-4EOC Ref: S10-1074)Kelly Petroleum Products owns fully depreciated equipment that was purchased for $26,500.The equipment had an estimated useful life of 8 years and an estimated residual value of $2,500. The equipment was sold for $2,700. Which of the following is the correct entry to record the transaction?A)Accumulated depreciation 26,500Cash 2,700Equipment 23,800B)Accumulated depreciation 26,500Cash 2,700Gain on sale of equipment 2,700Equipment 26,500C)Accumulated depreciation 24,000Cash 2,700Gain on sale of equipment 200Equipment 26,500D)None of the aboveAnswer:CDiff: 3Page Ref: 522, 523Objective: 10-4EOC Ref: S10-1075)Lowery Food Market owns refrigeration equipment that cost $10,000 and has accumulateddepreciation of $8,500. The company exchanges the equipment for new equipment worth $12,000. In addition to the old equipment, the company pays $10,000 for the new equipment.Which of the following is the correct entry to record the transaction?A)Refrigeration equipment 11,500Accumulated depreciation 8,500Cash 10,000Refrigeration equipment 10,000B)Refrigeration equipment 11,000Accumulated depreciation 8,500Loss on exchange of equipment 500Cash 10,000Refrigeration equipment 10,000C)Refrigeration equipment 12,000Accumulated depreciation 8,500Gain on exchange of equipment 500Cash 10,000Refrigeration equipment 10,000D)None of the aboveAnswer:ADiff: 2Page Ref: 523, 524Objective: 10-4EOC Ref: S10-1076)Lowery Food Market owns refrigeration equipment that cost $10,000 and has accumulateddepreciation of $7,400. The company exchanges the equipment for new equipment worth $12,000. In addition to the old equipment, the company pays $10,000 for the new equipment.Which of the following is the correct entry to record the transaction?A)Refrigeration equipment 12,000Accumulated depreciation 7,400Cash 10,000Refrigeration equipment 9,400B)Refrigeration equipment 12,000Accumulated depreciation 7,400Loss on exchange of equipment 600Cash 10,000Refrigeration equipment 10,000C)Refrigeration equipment 10,000Accumulated depreciation 10,000Gain on exchange of equipment 600Cash 12,000Refrigeration equipment 7,400D)None of the aboveAnswer:BDiff: 3Page Ref: 523, 524Objective: 10-4EOC Ref: S10-1077)Which of the following items should be depleted?A)LandB)Tangible property, plant, and equipment other than landC)Intangible propertyD)Natural resourcesAnswer:DDiff: 1Page Ref: 524, 525Objective: 10-5EOC Ref: S10-1178)Which of the following is the expense resulting from a decline in the utility of naturalresource?A)DepreciationB)DepletionC)AmortizationD)ObsolescenceAnswer:BDiff: 1Page Ref: 524, 525Objective: 10-5EOC Ref: S10-1179)Which of the following accounting methods is the method used to compute depletion?A)Straight-lineB)Units-of-productionC)Declining-balanceD)None of the aboveAnswer:BDiff: 1Page Ref: 524, 525Objective: 10-5EOC Ref: S10-11Table 10.2Navajo Mining Company purchased a mine in 2011 for $3,400,000. It was estimated that the mine contained 200,000 tons of ore and that the mine would be worthless after all of the ore was extracted. The company extracted 25,000 tons of are in 2011 and 30,000 tons of ore in 2012.80)Refer to Table 10.2. What is depletion expense for 2011?A)$340,000B)$425,000C)$510,000D)$680,000Answer:BDiff: 1Page Ref: 524, 525Objective: 10-5EOC Ref: S10-1181)Refer to Table 10.2. What is depletion expense for 2012?A)$340,000B)$425,000C)$510,000D)$680,000Answer:CDiff: 1Page Ref: 524, 525Objective: 10-5EOC Ref: S10-1182)Refer to Table 10.2. What is the book value of the mine at the end of 2012?A)$2,465,000B)$2,720,000C)$2,975,000D)$3,060,000Answer:ADiff: 2Page Ref: 524, 525Objective: 10-5EOC Ref: S10-1183)Which of the following is the amount capitalized as goodwill?A)The excess of the cost of an acquired company over the sum of the book value of its netassetsB)The excess of the cost of an acquired company over the sum of the book value of itsassetsC)The excess of the cost of an acquired company over the sum of the market value of its netassetsD)The excess of the cost of an acquired company over the sum of the market value of itsassetsAnswer:CDiff: 2Page Ref: 526, 527Objective: 10-6EOC Ref: S10-1284)Which of the following items should be amortized?A)LandB)Tangible property, plant, and equipment other than landC)Intangible propertyD)Natural resourcesAnswer:CDiff: 1Page Ref: 525, 526Objective: 10-6EOC Ref: S10-1285)Which of the following is the expense resulting from a decline in the utility of an intangibleasset?A)DepreciationB)DepletionC)AmortizationD)ObsolescenceAnswer:CDiff: 1Page Ref: 525, 526Objective: 10-6EOC Ref: S10-1286)Which of the following accounting methods is the method used to compute amortization?A)Straight-lineB)Units-of-productionC)Declining-balanceD)None of the aboveAnswer:ADiff: 1Page Ref: 525, 526Objective: 10-6EOC Ref: S10-1287)Which of the following is the proper accounting treatment for research and developmentcosts?A)Research and development costs must be capitalized and amortized over 20 years or less.B)Research and development costs must be capitalized and amortized over 70 years or less.C)Research and development costs must be capitalized and expensed each year to theextent that their value has declined.D)Research and development costs must be expensed.Answer:DDiff: 2Page Ref: 527Objective: 10-6EOC Ref: S10-12。
