Accounting 2 Unit 9 Review

Plant assets are long-lived, tangible assets used in the operation of a business

• True

• False

The process of allocating the cost of a plant asset over its useful life is known as cost reduction.

• True

• False

The cost principle requires a business to record the assets acquired, or services received, at their actual cost.

• true

• false

All plant assets are depreciated

• true

• false

Which of the following is included in the cost of a plant asset?

• amounts paid to get asset ready for use

• regular repair costs

• replacement parts of equipment

• wages of workers in normal operations

chreiner Construction Group paid $10,000 for a plant asset that had a market value of $12,500. At which of the following amounts should the plant asset be recorded?

• $10,000

• $12.500

Which of the following is a characteristic of a plant asset, such as a building?

• used in operations of a business

• available for sale to customers

• short, useful life

• will have a $0 residual value

The cost of land does not include the cost of fencing and paving.

• true

• false

Capitalizing a cost involves debiting the asset account.

• true

• false

Which of the following is included in the cost of land?

• fencing

• paving

• brokerage commissions

• outdoor lights