ACTG240_Practice Quiz Chapter 09

A detailed illustration showcasing various long-lived assets like buildings, machinery, and intangible assets, with a financial theme emphasizing depreciation and asset valuation.

ACTG240 Depreciation and Asset Management Quiz

Test your knowledge on depreciation and long-lived asset management with our comprehensive quiz! Designed for students and professionals alike, this quiz will help you understand key concepts in accounting and asset valuation.

10 challenging questions
Multiple choice format
Instant feedback on your answers

10 Questions2 MinutesCreated by CalculatingWizard421

Question 3. Which of the following items would not be considered a long-lived asset?

A) Buildings

B) Land improvements

C) Inventory

D) Land

Question 4. Accumulated depreciation:

A. Appears in the asset section of a balance sheet.

B. Appears on the income statement.

C. Is a liability on the balance sheet.

D. Appears on the statement of cash flow

Question 5. The MegaHit Film Studio owns a production lot and related equipment. How would MegaHit Company classify these assets on its balance sheet?

A. Tangible asset

B. Other long-lived asset

C. Intangible asset

D. Nonreported asset

Question 6. The book or carrying value of an asset is:

A. The amount that could be obtained for the asset on the balance sheet date if it were sold.

B. Its acquisition cost plus accumulated depreciation from the acquisition date to the balance sheet date.

C. Its acquisition cost less the accumulated depreciation from the acquisition date to the balance sheet date.

D. The annual cost of carrying the asset in inventory.

Question 7. After the early years of an asset's life, accelerated depreciation methods:

A. Cause an asset to be carried at a higher book value than the straight-line method.

B. Cause an asset to be carried at a lower book value than the straight-line method.

C. Cause an asset to be carried at the same book value as the straight-line method.

D. Cannot be used if the resulting book value will be significantly different from that which would result from using the straight-line method.

Question 8. Which of the following statements regarding the nature of long-lived assets is true?

A. Long-lived assets are assets that never decline in value.

B. Another name for a tangible long-lived asset is a fixed asset.

C. Long-lived assets have useful lives between 10 and 20 years.

D. Long-lived assets are defined as assets that are no longer being depreciated.

Question 9. When a company records depreciation it debits:

A. Liabilities and credits expenses.

B. Expenses and credits cash.

C. Expenses and credits a contra-asset account.

D. long-lived assets and credits expenses.

Question 10. Which of the following is not an amount that is needed to calculate straight-line depreciation?

A. The cost of the asset.

B. An estimate of the asset's useful economic life to the company.

C. The estimated amount that the company will get when it disposes of the asset.

D. The cost the company will be required to incur to replace the asset.

ACTG240_Practice Quiz Chapter 09

ACTG240 Depreciation and Asset Management Quiz

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