chapter 10

Plant assets are: 

• Tangible assets used in the operation of a business that have a useful life of more than one accounting period.
  

• Current assets.

• Held for sale.

• Tangible assets used in the operation of business that have a useful life of less than one accounting period.

Plant assets are: 

• Used in operations.

• Current assets.

• Long-term investments.

• Intangible.

Depreciation: 

• Measures the decline in market value of an asset.

• Measures physical deterioration of an asset.

• Is the process of allocating to expense the cost of a plant asset.

• Is an outflow of cash from the use of a plant asset.

The useful life of a plant asset is: 

• The length of time it is productively used in a company's operations.

• Never related to its physical life.

• Its productive life, but not to exceed one year.

• Determined by law.

A machine originally had an estimated useful life of 5 years, but after 3 complete years, it was decided that the original estimate of useful life should have been 10 years. At that point the remaining cost to be depreciated should be allocated over the remaining: 

(ý nó hỏi là bth xài 5 năm nhưng xài mà giữ gìn trùng tu machine nè, nên là sau 3 năm xài thì ngta thấy là useful life phải 10 năm chứ k phải 5 năm đâu). Xong họ hỏi là ê thế h là còn mấy years xài? Quá dễ, chọn sai thì thôi kỳ sau gặp lại nhau đi bay

• 2 years

• 5 years

• 7 years

• 8 years

When originally purchased, a vehicle had an estimated useful life of 8 years. The vehicle cost $23,000 and its estimated salvage value is $1,500. After 4 years of straight-line depreciation, the asset's total estimated useful life was revised from 8 years to 6 years and there was no change in the estimated salvage value. The depreciation expense in year 5 equals: 

Cái bài này là vẽ cái bảng ra kìa, nhớ khum các đại ca?

• $ 5,375.00.
  

• $ 2,687.50.

• $ 5,543.75.

• $10,750.00.

Nelson Company purchased equipment on July 1 for $27,500 and decided to depreciate the equipment on the straight-line method over its useful life of five years. Assuming the equipment's salvage value is $3,500, the amount of monthly depreciation expense Nelson should recognize is ... USD?

Nó hỏi monthly nha, vào thi đọc cho kỹ đề nhó

• 2,400

• 200

• 4,800

• 400

A total asset turnover ratio of 3.5 indicates that: 

• For every $1 in sales, the firm acquired $3.50 in assets during the period.
  

• For every $1 in assets, the firm produced $3.50 in net sales during the period.

• For every $1 in assets, the firm earned gross profit of $3.50 during the period.

• For every $1 in assets, the firm earned $3.50 in net income.

A company had average total assets of $897,000. Its gross sales were $1,090,000 and its net sales were $1,000,000. The company's total asset turnover equals: 

Công thức total asset turnover = Net Sales/Total Assets á bay

• 0.82

• 0.90

• 1.09

• 1.11

A company purchased a rope braiding machine for $190,000. The machine has a useful life of 8 years and a residual value of $10,000. It is estimated that the machine could produce 750,000 units of climbing rope over its useful life. In the first year, 105,000 units were produced. In the second year, production increased to 109,000 units. Using the units-of-production method, what is the amount of depreciation that should be recorded for the second year? 

PP unit of production kìa các anh em, mở slide ra tính giúp mình cái lào

• 25,200

• 26,160

• 26,660

• 27,613