Acc 557 Wk 7 Chapter 9,10 Quiz - All Possible Questions Essay

1130 Words Oct 17th, 2014 5 Pages
ACC 557 WK 7 Chapter 9,10 Quiz - All Possible Questions
To Purchase Click Link Below: ACC 557 WK 7 Chapter 9,10 Quiz - All Possible Questions TRUE-FALSE STATEMENTS 1. All plant assets (fixed assets) must be depreciated for accounting purposes.

2. When purchasing land, the costs for clearing, draining, filling, and grading should be charged to a Land Improvements account.

3. When purchasing delivery equipment, sales taxes and motor vehicle licenses should be charged to Delivery Equipment. 4. Land improvements are generally charged to the Land account.

5. Once cost is established
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15. Under the double-declining-balance method, the depreciation rate used each year remains constant. 16. The IRS does not require the taxpayer to use the same depreciation method on the tax return that is used in preparing financial statements. 7. A change in the estimated useful life of a plant asset may cause a change in the amount of depreciation recognized in the current and future periods, but not to prior periods. 18. A change in the estimated salvage value of a plant asset requires a restatement of prior years' depreciation. 19. To determine a new depreciation amount after a change in estimate of a plant asset's useful life, the asset's remaining depreciable cost is divided by its remaining useful life.

20. Additions and improvements to a plant asset that increase the asset's operating efficiency, productive capacity, or expected useful life are generally expensed in the period incurred. 21. Capital expenditures are expenditures that increase the company's investment in productive facilities.

22. Ordinary repairs should be recognized when incurred as revenue expenditures.

23. A characteristic of capital expenditures is that the expenditures occur frequently during the period of ownership.

24. Once an asset is fully depreciated, no

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