Q.1
Which fixed asset is LEAST likely to lose its value over time?
  • land
  • equipment
  • buildings
  • new delivery van
Q.2
The original cost of a plant asset minus accumulated depreciation. (p. 451)
  • current assets
  • plant assets
  • salvage value
  • book value of a plant asset
Q.3
The total amount of depreciation expense that has been recorded since the purchase of a plant asset is called
  • book value.
  • accumulated depreciation.
  • salvage value.
  • net realizable value.
Q.4
A milling machine was bought for $200,and has accumulated depreciation of $65,On February 20th, the company disposed of the machine receiving nothing in return. How would you record the loss on the disposal of the milling machine?
  • $65,000
  • $70,000
  • $135,000
  • No loss on the disposal
Q.5
Because of land’s permanent nature, it is not subject to depreciation.
  • True
  • False
Q.6
Calculating the estimated annual depreciation expense based on the amount of production expected from a plant asset.
  • units-of-production method
  • declining-balance-depreciation
  • straight-line-depreciation
  • salvage value
Q.7
Recording an equal amount of depreciation expense for a plant asset in each year of its useful life.
  • units-of-production method
  • straight-line-depreciation
  • salvage value
  • real property
Q.8
The amount that will be received for an asset at the time of its disposal.
  • straight-line-depreciation
  • units-of-production method
  • assessed value
  • salvage value
Q.9
Land and anything attached to it; also called real estate.
  • assessed value
  • real property
  • personal property
  • units-of-production method
Q.10
Cash and other assets expected to be exchanged for cash or consumed within a year.
  • loss on plant asset
  • current asset
  • gain on plant asset
  • modified half-year convention
Q.11
A type of accelerated depreciation that multiplies the book value of an asset by a constant depreciation rate to determine annual depreciation.
  • declining-balance-depreciation
  • assessed value
  • Modified Accelerated Cost Recovery System (MACRS)
  • straight-line-depreciation
Q.12
The decrease in the value of a plant asset because of the removal of a natural resource.
  • salvage value
  • loss on plant asset
  • depletion
  • gain on plant asset
Q.13
Revenue that results when a plant asset is sold for more than book value.
  • gain on plant asset
  • loss on plant asset
  • salvage value
  • plant asset record
Q.14
A method that recognizes one half of a year's depreciation in the year of acquisition.
  • personal property
  • straight-line-depreciation
  • modified half-year convention
  • half-year convention
Q.15
The loss that results when a plant asset is sold for less than book value.
  • salvage value
  • loss on plant asset
  • units-of-production method
  • real property
Q.16
The tax rate used to calculate property taxes.
  • loss on plant asset
  • plant asset record
  • salvage value
  • milage rate
Q.17
A depreciation method required by the Internal Revenue Service to be used for income tax calculation purposes for most plant assets.
  • units-of-production method
  • Modified Accelerated Cost Recovery System (MACRS)
  • personal property
  • straight-line-depreciation
Q.18
A method that recognizes a full year's depreciation if the asset is acquired in the first half of the year.
  • modified half-year convention
  • straight-line-depreciation
  • salvage value
  • units-of-production method
Q.19
All property not classified as real property.
  • personal property
  • real property
  • salvage value
  • units-of-production method
Q.20
An accounting form on which a business records information about each plant asset.
  • salvage value
  • units-of-production method
  • plant asset record
  • loss on plant asset
0 h : 0 m : 1 s