DiegoVillescasACCT2301.03PRE (2)

Long-lived assets are assets?

• Acquired for use of 1 or more years

• Acquired for use of less than a year

• Acquired for use over 100 years

• Are not a real thing

The two kinds of long lived assets are?

• Asset and Contra Asset

• Short term and long term

• Tangible and intangible

• None of the above

True or False: Capitalized cost are recorded as an expense

• True

• False

The difference between the asset's cost and its accumulated depreciation is called?

• Carrying Value/Book Value

• Market Value

• Asset Value

The fixed value turnover ratio equation is?

True or False: Land is never used up (depreciated)

• True

• False

1.     Bike World purchases equipment at a price of $44,000,000, because it pays with cash, the supplier offers a $1,720,000 discount. Transportation costs were $123,000 and Installation costs were $746,000. The journal entry would include a debit to

• Equipment of 43,149,000

• Cash of 43,149,000

• Account Receivables of 43,149,000

• Notes Payable of 43,149,000

Under what depreciation method(s) is an asset’s book value (cost - accumulated depreciation) used to calculate depreciation each year?

• Straight-Line Method

• Units-of-Production method

•   Declining-balance method

• Weighted-Average-Cost Method

1.     Intangible Assets include all of the following except:

• Trademarks

• Copyrights

• Patents

•   Land

1.     Bike World purchases property (land) on credit. Record the transaction

• Dr. Land

  Cr. Cash

• Dr. Land

  Cr. Notes Payable

• Dr. Notes Receivable

  Cr. Land