Accounting test..HELP!!!?

Question by Savannah Jones: Accounting test..HELP!!!?
here is a tst i hav ei need some help!

1. A characteristic of a fixed asset is that it is
a. intangible
b.used in the operations of a business
c.held for sale in the ordinary course of the business
d.a long term investment

2. Land acquired so it can be resold in the future is listed in the balance sheet as a(n)
a. fixed asset
b. current asset
c. investment
d. intangible asset

3. Which of the following should be included in the acquisition cost of a piece of equipment?
a. transportation costs
b.installation costs
c. testing costs prior to placing the equipment into production
d. all are correct

4. Which of the following is included in the cost of constructing a building?
a. insurance costs during construction
b. cost of paving parking lot
c. cost of repairing vandalism damage during construction
d. cost of removing the demolished building existing on the land when it was purchased

5. Accumulated Depreciation
a. is used to show the amount of cost expiration of intangibles
b. is the same as Depreciation Expense
c. is a contra asset account
d. is used to show the amount of cost expiration of natural resources

6. Expenditures that add to the utility of fixed assets for more than one accounting period are
a. committed expenditures
b. revenue expenditures
c. current expenditures
d. capital expenditures

7. A capital expenditure results in a debit to
a. an expense account
b.a capital account
c. a liability account
d. an asset account

8. In a lease contract, the party who legally owns the asset is the
a. lessee
b. lessor
c. operator
d. banker

9.All leases are classified as either
a. capital leases or long-term leases
b. capital leases or operating leases
c. operating leases or current leases
d. long-term leases or current leases

10. Factors contributing to a decline in the usefulness of a fixed asset may be divided into the following two categories
a. salvage and functional
b. physical and functional
c. residual and salvage
d. functional and residual

11. A fixed asset’s estimated value at the time it is to be retired from service is called
a. book value
b. residual value
c. market value
d. carrying value

12. When the amount of use of a fixed asset varies from year to year, the method of determining depreciation expense that best matches allocation of cost with revenue is
a. declining-balance
b. straight-line
c. units-of-production
d. MACRS

13. The most widely used depreciation method is
a. straight-line
b. sum-of-the-years-digits
c. declining-balance
d. units-of-production

14. The depreciation method that does not use residual value in calculating the first year’s depreciation expense is
a.straight-line
b. units-of-production
c. double-declining-balance
d. none of the above

15. Expected useful life is
a. calculated when the asset is sold.
b. estimated at the time that the asset is placed in service.
c. determined each year that the depreciation calculation is made.
d. none of the answers are correct

16. The accumulated depletion account is
a. an expense account
b. an intangible asset account
c. reported on the income statement as other expense
d. reported on the balance sheet as a deduction from the cost of the mineral deposit

17. The process of transferring the cost of metal ores and other minerals removed from the earth to an expense account is called
a. depletion
b. deferral
c. amortization
d. depreciation

18. Expenditures for research and development are generally recorded as
a. current operating expenses
b. assets and amortized over their estimated useful life
c. assets and amortized over 40 years
d. current assets

19. The term applied to the amount of cost to transfer to expense resulting from a decline in the utility of intangible assets is
a. amortization
b. depletion
c. depreciation
d. allocation

20. The exclusive right to use a certain name or symbol is called a
a. franchise
b. patent
c. trademark
d. copyright

HEELLPPP PLEASE
I NEED HELP

Best answer:

Answer by Sandy
1. A characteristic of a fixed asset is that it is
b.used in the operations of a business

2. Land acquired so it can be resold in the future is listed in the balance sheet as a(n)
c. investment

3. Which of the following should be included in the acquisition cost of a piece of equipment?
d. all are correct

4. Which of the following is included in the cost of constructing a building?
a. insurance costs during construction

5. Accumulated Depreciation
c. is a contra asset account

6. Expenditures that add to the utility of fixed assets for more than one accounting period are
d. capital expenditures

7. A capital expenditure results in a debit to
d. an asset account

8. In a lease contract, the party who legally owns the asset is the
b. lessor

9.All leases are classified as either
b. capital leases or operating leases

10. Factors contributing to a decline in the usefulness of a fixed asset may be divided into the following two categories
b. physical and functional

11. A fixed asset’s estimated value at the time it is to be retired from service is called
b. residual value

12. When the amount of use of a fixed asset varies from year to year, the method of determining depreciation expense that best matches allocation of cost with revenue is
c. units-of-production

13. The most widely used depreciation method is
a. straight-line

14. The depreciation method that does not use residual value in calculating the first year’s depreciation expense is
c. double-declining-balance

15. Expected useful life is
b. estimated at the time that the asset is placed in service.

16. The accumulated depletion account is
d. reported on the balance sheet as a deduction from the cost of the mineral deposit

17. The process of transferring the cost of metal ores and other minerals removed from the earth to an expense account is called
a. depletion

18. Expenditures for research and development are generally recorded as
a. current operating expenses

19. The term applied to the amount of cost to transfer to expense resulting from a decline in the utility of intangible assets is
a. amortization

20. The exclusive right to use a certain name or symbol is called a
c. trademark

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