Which of the following expenditures would be included in the cost of a fixed asset? O a. Sales taxes Ob. Vandalism Oc. Uninsured theft Od. Mistakes in installation
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- Which of the following expenditure is not capital expenditure for equipment? a. Assembly b. Testing for use c. Uninsured theft d. Sale tax e. None of the answer is correctWhich is not an expense? A. costs of goods sold or services rendered B. loss on disposal of a noncurrent asset C. write-off of a worthless intangible D. use of entity resources E. answer not given8. Normal repair and maintenance of an asset is an example of what? a.Revenue expenditure b.Capital expenditure c.An expenditure that will be depreciated d.An expenditure that should be avoided
- Which of the following statements about capitalizing costs is correct? A. Capitalizing costs refers to the process of converting assets to expenses. B. Only the purchase price of the asset is capitalized. C. Capitalizing a cost means to record it as an asset. D. Capitalizing costs results in an immediate decrease in net income.Which of the following is not a factor in selecting a depreciation method? a. salvage valueb. repair and maintenance costsc. Inflationd. the risk associated with the cash flows from the assetWhich of the following is INCORRECT regarding depreciation? Select one: O a. It is not a matter of valuation. O b. It is a means of cost allocation. Oc. O d. It is an attempt to reflect the fair market values of the related assets. It is part of the matching of revenues and expenses.
- From the following identify the cost that is not a cost of PPE? Professional fees Nonrefundable taxes Testing the functionality of asset Value added tax Jumn toWhich statement about depreciation is false?a. A major objective of depreciation accounting is to allocate the cost of using an assetagainst the revenues it helps to generate.b. Depreciation should not be recorded in years in which the market value of the asset hasincreased.c. Obsolescence as well as physical wear and tear should be considered when determiningthe period over which an asset should be depreciated.d. Depreciation is a process of allocating the cost of an asset to expense over its usefullife.Which of the following items may be classified as nonoperating revenues and expenses? Multiple Choice Loss on the sale of equipment. Interest revenue. All of the other answers are classified as nonoperating revenues and expenses. Interest expense.
- From the following identify the cost that is not a cost of PPE? Professional fees Nonrefundable taxes Testing the functionality of asset Value added tax Iump toWhich one of the following is not one of the factors in computing depreciation? Cost price Inadequacy Salvage value Exchange price Which of the following account is debited when account payable is converted into note payable? 直Which of the following concepts is violated when measuring inventories at the lower of cost and net realizable value? * The concept that assets shall not be carried at an amount in excess of its recoverable amount. O Historical cost concept O Prudence or conservatism concept Offsetting concept