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WorksheetsCHAPTER 9: ACCOUNTING FOR NON-CURRENT ASSETS
Total questions: 10
Worksheet time: 6mins
Which of the following is not a plant asset?
Land
Buildings
Equipment
Accounts Payable
Repair work that generates a capital expenditure because its extend the asset's life past the normal expected life is called
depreciable cost
extraordinary repair
revenue expenditure
asset expenditure
Which of the following is not a factor in calculating depreciation of a plant asset?
Capitalized cost
Estimated useful life
Estimated residual value
Estimated liability value
A copy machine costs RM45,000 when new and has accumulated depreciation of RM44,000. Suppose Print and Photo Center junks this machine and receives nothing. What is the result of the disposal transaction?
No gain or loss
Gain RM1,000
Loss RM1,000
Loss RM45,000
Which of the following is not a step during the disposal of an asset?
Bring the depreciation up to date
Remove the old and disposes-of asset
Record the value of accounts payable
Determine the amount of any gain or loss
Which of the following is not an intangible asset?
Patents
Amortization
Copyrights
Trademarks
A truck costs RM50,000 when new and has accumulated depreciation of RM35,000. Suppose Wilson Trading exchanges the truck for a new truck. The new truck has a market value of RM60,000 and Wilson pays cash of RM40,000. Assume the exchange has commercial substance. What is the result of this exchange?
No gain or loss
Gain of RM5,000
Loss of RM5,000
Gain of RM45,000
Which depreciation methods allocates an equal amount of depreciation to each year?
Straight line method
Units-of-production method
Double-declining-balance method
Plant assets are reported on the Balance Sheet at a book value (Cost-Accumulated Depreciation)
TRUE
FALSE
Intangible assets are assets that have physical form and non-valuable.
TRUE
FALSE
