ACC 2 Ch 7 Review

Plant assets are also referred to as:

• fixed assets

• current assets

• intangible assets

• short-term assets

A company purchases a building and land for $400,000. The building is appraised for $300,000 and the land for $150,000. What is the assigned cost for the land?

• 150,000

• 152,000

• 300,000

• 400,000

The accounting form on which a business records information about each plant asset is called a:

• plant asset record

• salvage record

• mileage record

• assessed value

The value of an asset determined by tax authorities for the purpose of calculating taxes is called:

• plant asset record

• salvage record

• mileage record

• assessed value

Salvage value is also referred to as:

• residual value

• scrap value

• trade-in value

• all of the above

According to a business, Does land depreciation over time?

• Yes

• No

What is the formula for calculating a plant's asset's annual straight-line depreciation expense?

• Principal X Interest X Time

• Original cost - salvage value / estimated useful life

• Original cost + salvage value / estimated useful life

• Principal X Interest X Time / Useful Life

What are the common ways of disposing a plant asset?

• discarding

• selling

• trading

• all of the above

Do you need to update the plant asset record when disposing a plant asset?

• Yes

• No

If a plant asset is discarded during a fiscal year, how much depreciation expense do you record?

• The full amount for the year

• Partial depreciation expense