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QUESTION 2

The term applied to the periodic transfer of a fixed asset's cost to expense is:

	a.	cost expiration
	b.	depletion
	c.	depreciation
	d.	amortization

QUESTION 9

A machine with a cost of $65,000 has an estimated residual value of $5,000 and an estimated life of 15, 000 hours. It is to be depreciated by the units-of-production method. What is the amount of depreciation for the second full year, during which the machine was used 5,000 hours ?

	a.	$8,000
	b.	$20,000
	c.	$12,000
	d.	$21.667

QUESTION 11

Equipment with a cost of $160,000 has an estimated residual value of $10,000 and an estimated life of 5 years. It is to be depreviated by the straight-line method. What is the amount of depreciation for the first full year?

	a.	$30,000
	b.	$32,500
	c.	$34,000
	d.	$40,000

QUESTION 15

When a company sells machinery at a price equal to its book value, this transaction would be recorded wth an entry that would include the following:

	a.	debit Cash and Accumulated Depreciation; credit Machinery
	b.	debit Machinery; credit Cash and Accumulated Depreciation
	c.	debit Cash and Machinery; credit Accumulated Depreciation
	d.	debit Cash and Depreciation Expense; credit Accumulated Depreciation

QUESTION 17

Which of the following is classified as an intangible asset on the balance sheet ?

	a.	Goodwill
	b.	Buildings
	c.	Machinery
	d.	Land Held for Future Use

QUESTION 19

Patents are reported on the balance sheet in the

	a.	intangible assets section
	b.	current assets section
	c.	property, plant , and equipment section
	d.	investments section

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