Acc Chapter 9

Front 1

Bailey Company purchases a new delivery truck for $35,000. The sales taxes are $2,000. The logo of the company is painted on the side of the truck for $1,200. The truck license is $120. The truck undergoes safety testing for $220. What does Bailey record as the cost of the new truck?

Back 1

38,420

Front 2

what are the subdivisions of plant assets.

Back 2

Land,

land improvements,

buildings,

equipment

Front 3

when a significant amount of time is required to get the building ready for use

Back 3

When would interest costs would be included as part of the historical cost for a building

Front 4

Modern Industries, an electronics manufacturer, ________ research and development costs, and ________ legal fees when successful patents are developed.

Back 4

expenses; capitalizes

Front 5

Although some items are purchased as assets that will benefit a business for a long time, they should be expensed immediately instead of classified as a ________. This is an example of the ________ concept

Back 5

capital expenditure; materiality

Front 6

Classifying capital expenditures as revenue expenditures will ________ assets and ________ net income.

Back 6

understate; understate

Front 7

An ordinary repair is considered to be which type of expenditure?

Back 7

revenue expenditure

Front 8

Additions and improvements to a plant asset that increase the asset's operating efficiency, productive capacity, or expected useful life are generally

Back 8

debited to the plant asset affected

Front 9

ch 7: Printing check amounts by machine in indelible ink is an example of

Back 9

physical controls

Front 10

ch 7 Making payments from a petty cash fund requires

Back 10

no entry

Front 11

A company reports a debit balance in Cash Over and Short as a(n)

Back 11

miscellaneous expense

Front 12

A bank may issue a credit memorandum for

Back 12

the collection of a note receivable by the bank for the depositor.

Front 13

The reconciling item in a bank reconciliation that will result in an adjusting entry by the depositor is

Back 13

bank service charge

Front 14

outstanding checks

Back 14

deducted from the bank balance.

Front 15

If an intangible asset has a finite life, it should be amortized.

The amortization period of an intangible asset can exceed 20 years.

Goodwill is recorded only when a business is purchased

Back 15

true

Totals of major classes of assets can be shown in the balance sheet, with asset details disclosed in the notes to the financial statements.