Capital Assets MCQs

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A business acquired land and two buildings for a single, lump-sum purchase price of $140,000. The land was assessed for tax purposes at $50,000 and th...






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An asset having a four-year service life and a salvage value of $5,000 was acquired for $45,000 cash on June 28. The amortization expense at the end o...






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An asset having a four-year service life and a salvage value of $5,000 was acquired for $45,000 cash on January 2 of Year One. The amortization expens...






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Asset amortization is calculated to the nearest






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A(n) ______________________ is an expenditure that produces economic benefits that do not fully expire before the end of the current period.






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Failure to record the year-end adjustment for amortization will result in






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An asset having a four-year service life and a salvage value of $5,000 was acquired for $45,000 cash on April 5. Using straight-line amortization, the...






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For which asset shown in the schedule below is a contra account maintained for the recognition of writing-off its cost over its useful life?






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Which of the accounting procedures or the accounting rules applied to intangible assets is not true?






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The Ophir Mining Company acquired an iron ore deposit for $2,000,000. The company’s geologist estimated the deposit to contain 1,500,000 tons o...






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The Ophir Mining Company acquired an iron ore deposit for $2,000,000. The company’s geologist estimated the deposit to contain 1,500,000 tons o...






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Which line of the following schedule is incorrect?






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Which of the following assets has physical characteristics?






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Equipment is purchased for $50,000 and is expected to last 10 years with no salvage value. After using the asset for 4 years, the company estimates th...






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An asset that cost $65,000 has accumulated amortization of $23,000 is sold for $50,000. The journal entry to record the sale of the asset would includ...